Jump to content

Tesla Loses New Jersey


 Share

Recommended Posts

Turbocharged

Tesla Motors Inc.'s recent defeat in New Jersey may have catalyzed lawmakers in other states to take the side of the electric car maker.

Arizona lawmaker, Rep. Warren Petersen, added an amendment to a non-dealer-related piece of legislation Wednesday that would open the state to sales of Tesla vehicles. The legislation made it out of a Senate committee, but still must be approved by both legislative bodies to become law, a staffer for Rep. Petersen said.

 

Right now, Arizona, along with Texas and New Jersey, are the only states where Tesla sales are prohibited.

 

Arizona is one of four states, including Nevada, Texas and New Mexico, that also are vying to be the location for Tesla’s so-called “Gigafactory,” a massive battery plant for which the company recently raised $2 billion.

 

Last week, New Jersey’s Motor Vehicle Commission added new language to its dealer licensing regulations that required all dealers to be independent franchises. Tesla will have to cease operating its two New Jersey dealerships by April 1, turning them into “galleries” that can display the vehicles but not try to sell them.

 

New York state is the next stop in the Tesla war with the dealers. On Friday, the state’s legislature is expected to take up a bill that would stop Tesla from operating in the state. The move prompted New York lawmaker David Buchwald to hold a protest rally at the Tesla store at The Westchester Mall in White Plains. He also promises to propose a new state “clean energy policy to promote the expansion of electric cars.”

 

Ohio legislators similarly have proposed legislation that would limit Tesla to the two stores it already operates in Columbus and Cincinnati. Tesla would like to expand to Cleveland, at a minimum, and is trying to strike a deal with the state dealers’ association there.

 

Last week, Tesla Chief Executive Officer, Elon Musk, responded to the defeat in New Jersey with a blog post that excoriated New Jersey Gov. Chris Christie and took issue with the franchised dealer system.

 

Tesla sells direct to consumers without using independent dealers. Dealers argue that the system is dangerous for consumers because manufacturers aren’t incentivized to make warranty repairs and if the company fails, customers are left without an outlet to repair their vehicles.

↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...