Tesla banned from new jersy | *UPDATE* 03/14/2014

[AlexGoesHigh]

http://www.theverge.com/2014/3/11/5497638/tesla-sales-banned-in-new-jersey

 

 

Tesla was dealt a crushing blow in New Jersey today after the state's Motor Vehicle Commission passed a rule that will prevent the company from selling its electric cars directly to consumers starting in April. Unlike other automakers, Tesla sells its Model S through company-owned retail stores — a business model that cuts out the franchised auto dealerships that have ruled the market for decades. New Jersey is the third US state to ban car manufacturers from selling directly to customers, joining Texas and Arizona. But unlike those two states, New Jersey is home to a booming luxury vehicle market, making this a major loss for Tesla.

 

As you might guess, Tesla is outraged by the decision. In a blog post, the company blasted Governor Chris Christie's administration for deceitful tactics. Tesla claims that Christie previously agreed to delay the proposed amendment, which would have allowed "a fair process" in the state legislature. But yesterday — just 24 hours before the amendment was hurriedly passed — Tesla says it abruptly received word that Christie's administration "had gone back on its word." Tesla says the amendment "is an affront to the very concept of a free market." And the company insists this isn't just about cutting out the middleman; Tesla says full control over the buying experience is necessary to properly educate car buyers about the benefits that come with going electric.

 

tesla blog post

 

 

We strongly believe it is vital to introduce our own vehicles to the market because electric cars are still a relatively new technology. This model is not just a matter of selling more cars and providing optimum consumer choice for Americans, but it is also about educating consumers about the benefits of going electric, which is central to our mission to accelerate the shift to sustainable transportation, a new paradigm in automotive technology.

 

Elon Musk also took harsh words on twitter by this decision

 

https://twitter.com/elonmusk/statuses/443406853553152000

 

 

New Jersey auto dealers subverting democratic process to try to block Tesla sales http://www.teslamotors.com/blog/defending-innovation-and-consumer-choice-new-jersey

 

ok this is just bad can't believe they are banning them for simply cutting the middle man, that stupid

 

UPDATE:  Elon Musk accuses New Jersey governor of backroom dealing in Tesla ban 03/14/2014

 

 

Coming days after Tesla was effectively banned from selling cars directly to customers in New Jersey, CEO Elon Musk personally penned a post on the Tesla blog expressing his disappointment with the New Jersey Motor Vehicle Commission's ruling. Musk is pissed; in calling New Jersey governor Chris Christie out for allowing the car lobby to cut a "backroom deal" to ban Tesla stores, he also accuses the NJMVC of essentially extorting consumers and barring them from democratically selecting how they want to purchase their cars.

 

In the course of the screed, Musk states that the laws already on the books originally designed to protect car dealers from powerful auto manufacturers are now being "twisted to an unjust purpose." Dealers currently wield considerable clout, and are able to influence policymakers to pass proposals like PRN 2013-138 that force car makers to sell under their auspices and prevent choice. Electric cars, in Musk's view, are a harder sell for dealerships, where selling traditional, more familiar cars are easier and ensure a bigger payoff in terms of repairs over the life of the car. Just ask Fisker: even though the Karma was a dud from even before its launch, being hamstrung by dealers cannot have helped the recently-shuttered company's overall prospects. Now the same can happen to Tesla, even though the Model S earned top marks at Consumer Reports last year.

 

"GOV. CHRISTIE HAS A BRIDGE CLOSURE HE WANTS TO SELL YOU!"

 

Ultimately, Musk believes the blame should fall squarely on vested interests unconcerned with consumer protection, even if that was the rationale they used in the ban. "If you believe this," he writes, "Gov. Christie has a bridge closure he wants to sell you! Unless they are referring to the mafia version of "protection", this is obviously untrue." Tesla is still intent on selling cars until April 1st, and will transition to galleries when the law goes into effect. In the interim, Musk is looking for "judicial remedies" to reverse the law, and encourages customers to write to their representatives.

 

this a serious accusation from him, i'm glad he's fighting this BS 

[Loe]

They already were banned in Texas for the exact same reason if I am not mistaken.

[kuddlesworth9419]

Can't they just sell their cars over the web and make it a collect type deal. 

[Fred Castellum]

This really ticks me off being a former investor in Tesla... 

 

Can't they just sell their cars over the web and make it a collect type deal. 

Business model would have to totally change and they'd have to take on rules and regulations for selling cars over the web especially since their the manufacturer. 

[Covalent]

IMO, this really infringes on the very basis of a free market capitalistic system.

[wpirobotbuilder]

Fortunately, NJ is not that big of a state. You could hop next door to New York, Pennsylvania, Maryland or Delaware and purchase your car (which is allowed).

 

For people who really want a Tesla, they'll probably go with that option. If that's the case, then all this amendment will do is drive their business to neighboring states and away from New Jersey.

[AlexGoesHigh]

Fortunately, NJ is not that big of a state. You could hop next door to New York, Pennsylvania, Maryland or Delaware and purchase your car (which is allowed).

 

For people who really want a Tesla, they'll probably go with that option. If that's the case, then all this amendment will do is drive their business to neighboring states and away from New Jersey.

well NJ is the 3rd state whit most sales of luxury cars  

[carolkarine]

yeah, NJ is like an hour drive to any other state right?

[Jumper118]

This is gooD news. ain't nobody got time for dis electric car nonsense.

[wpirobotbuilder]

yeah, NJ is like an hour drive to any other state right?

From what I can tell on Google Maps, the furthest point in New Jersey is about 60 miles from the border of any other state (point to point). That's 1-2 hours depending on traffic and the roads you come on.

 

For someone who really wants a Tesla, I don't think they'll have a problem with leaving New Jersey.

 

well NJ is the 3rd state whit most sales of luxury cars  

If Tesla sets up shop just over the border, they'll get most of the people from New Jersey. Maybe not all, but most.

[Bluuz]

Haven't we seen this before...? Right, the '70s.

Gas and energy companies bribing lobbying politicians to crush any form of competition alternative energy.

It wouldn't be such a bad thing if our current model was so detrimental to the environment.   

[catbutts]

Lots of people are quick to ban competition this year.

[MeltyMoon]

*Looks at location, cries*

[Ertman]

Republicans believe in free market, and that the govenerment should not interfere in the market.

Three states with republican governors where the state has enacted rules that prevent tesla from directly taking part in the free market.

Nice.

[Malkavain3]

Let's all just ban innovation while we're at it and protect the decades-old companies that have a firm choke-hold on the market already. Screw everyone else, right? Gimme a break...

[DigiKing]

Just another reason why I would never live in America.

[hal9001]

Wat

(Insert meme here)

Come on Elan!

[ThatAngryGnome]

This is gooD news. ain't nobody got time for dis electric car nonsense.

^^^ Either a troll or a dumbass (or both)

[Moredeath]

This hurts me since I was looking to buy one here. Aw well better go buy it in the state that I actually have my license

[mc141]

Christies got more important things to wory about like covering his ass on bridgegate and finishing sandy repair funds than blocking direct sales on eco frendly cars

[Gtfokenny]

Jersey has one of the highest population densities, which maybe why it's such a big deal?  

[DonPOETA]

Looks like Chris Christie is going full retard and as we all know

 

 

Maybe Elon Musk turned down his 9/11 memorabilia gift...

[martinrox1568]

well its not like most people by a tesla like other cars. If you have a tesla you most likely wanted a tesla and did substantial research on it rather than it being a split second decision. Because of this, people who want one can still go to neighboring states

[atrash]

wpirobotbuilder, on 12 Mar 2014 - 07:36 AM, said:

Fortunately, NJ is not that big of a state. You could hop next door to New York, Pennsylvania, Maryland or Delaware and purchase your car (which is allowed).

 

For people who really want a Tesla, they'll probably go with that option. If that's the case, then all this amendment will do is drive their business to neighboring states and away from New Jersey.

 

I think since it is quite a new technology for the people,obviously it would be best to have their own franchaise/dealership in that state in case the customer is having any problem with the car (easier assistance) or for a quick service. Or maybe they can just set up a permanent or mobile workshop in NJ,but people have to buy the car in the neighbouring states.

[MetEishYa]

Why don't Tesla just start there own new francised auto dealerships in those states. Would that be possible?

 

Its extremely stupid not to allow car manufactures to sell direct to the public.