Tesla Files Appeal on NJ Direct Sales Ban

By | April 03, 2014
Legislation for and against Tesla's direct-selling practices has come through the New Jersey Superior Court in recent weeks, and now Tesla Motors itself has filed an appeal to overturn last month's ruling that banned direct selling to customers. The state has banned this practice as it goes outside of the laws that protect franchised dealers and prohibit factory-owned stores. However, some states have made a compromise with the electric automaker, letting them operate from a limited number of stores. As of right now, Tesla will have to stop sales in New Jersey by April 15, according to the New Jersey Motor Vehicle Commission's ruling. In a statement made this week by Tesla, the ban for direct-selling may directly harm the state's consumers. "As the [Motor Vehicle Commission] itself recognized when it licensed two Tesla locations in 2012, New Jersey law was clearly written to prevent car manufacturers from exploiting their greater market power to compete unfairly against dealership franchises that sell their cars, something that simply doesn't apply to Tesla because it has no dealership franchises."
There have been many accusations flying around that Tesla is breaking laws and competing unfairly with the rest of the industry. Some groups are even trying to force the electric automaker to adhere to franchise laws and build franchises in order to continue selling their vehicles. However, Tesla isn't sitting idly back. After Tesla threw accusations of its own at Gov. Chris Christie, the governor retaliated by telling The Star-Ledger that he's "not pushing Tesla out; the state Legislature did. They passed a law, which is still on the books, which says if you want to sell cars in this state, you must go through an authorized dealer. My job is not to make the laws; it's to enforce the laws. And Tesla was operating outside the law." While the automaker may be struggling to continue to sell vehicles in New Jersey, other states like Ohio and New York have let Tesla keep its doors open. Ohio recently approved a bill to let Tesla open up another store, while New York will allow the electric automaker to keep its current five stores open, but won't let them add any more. Source: Automotive News (Subscription Required)