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Tesla Fights New Jersey Ban on Direct Car Sales in Court


Tesla Fights New Jersey Ban on Direct Car Sales in Court

Tesla Motors Inc. (TSLA) appealed New Jersey’s ban on direct auto sales, arguing that the decision thwarts the carmaker’s mission of providing sustainable transportation and unfairly favors entrenched franchise dealers.

The action comes as Elon Musk, Tesla’s chief executive officer and co-founder, fights with car dealer groups across the U.S. to let the Palo Alto, California-based maker of electric Model S sedans sell directly to consumers from company stores.

Tesla challenged a direct-sales ban imposed by a New Jersey commission in state Superior Court, according to documents made available by the company. The filing couldn’t immediately be verified in court records.

Restrictions by U.S. states on how Tesla sells its battery-powered Model S, priced from $71,000, would slow Musk’s plan to shift his company from a niche maker of battery-powered luxury cars to an automotive powerhouse. Tesla’s fight with dealers has increased scrutiny of U.S. auto franchise rules that go back eight decades.

“Franchise dealers have an inherent conflict of interest in selling electric vehicles,” Tesla said in court papers. “In order to do so effectively, they would need to enthusiastically tout the reasons why electric vehicles are superior to gasoline vehicles. This is not something that they are going to do since gasoline vehicles represent virtually all of their revenue.”

Tesla rose 6.1 percent to $230.29 at the close in New York, the biggest one-day jump since Feb. 25. The shares have advanced 53 percent this year. (Pearson and Ohnsman/Bloomberg)…

5 thoughts on “Tesla Fights New Jersey Ban on Direct Car Sales in Court

  1. They would need to lie “that electric vehicles are superior to gasoline vehicles”.

    The Libtard Lefties that love electric vehicles should be honest about the waste that is produced making the batteries, and the coal that is burnt to produce the electricity that runs the cars.

    And finally if Tesla is so great….then why do they rely on a $7,500.00 tax credit paid for by you, and me, and every other citizen they confiscate taxes from to distribute according to crony capitalism.

  2. Musk thinks the government is good when it pays his customers $7500 to buy the car, but bad when it caves to the dealers. A little bit of hypocrisy in action there.

    That said, auto dealers at best add nothing to the value of a car and only exist through anti-competitive franchise laws. Crony capitalism at its worst

  3. Well put #1! The production of the Tesla has over 50,000 miles of gasoline emissions (carbon footprint) while it is sitting on the showroom floor with zero miles on it. This is due to the mining of the lithium & processing of the lithium for use in the batteries. In addition the electricity necessary to run the car has to be provided by fossil fuels or Nuclear energy that run our power generating plants. Electric cars are NOT emission free……

  4. I only wish I could buy vehicles direct from a manufacturer.
    Having just gone through the process of purchasing a new car, I can state emphatically that every dealership I spoke with during the process was conniving lying thief who did their best to screw me.
    Fortunately I did my research and did not fall for any of their bullshit , however I can see how must people not familiar with negotiation get screwed and pay more than they should..

  5. I despise any buying process that makes me feel like I am in Tijuana. I don’t want to bargain. Just tell me the damn price and I will decide whether or not to buy it. They dealer system has to go.

    This should be an opportunity for New Jersey. If we dismantle the dealer system, we could end up generating lots of sales in state. Manufacturers could start making sales in state which would boost our sales tax revenues. Like Florida is to income tax we can be to car sales.

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