New Jersey senate signs bill for Tesla sales in NJ, sends it to Gov. Christie

FlasherZ · Mar 16, 2015

Barring a block from Christie (which IMO would be stupid), it appears that New Jersey will be able to sell Tesla vehicles again:

Tesla near a big win in New Jersey - Mar. 16, 2015

The state Senate passed a bill Monday that would allow Tesla to sell its vehicles to customers, rather than through auto dealerships. New Jersey law bans automakers from selling directly to consumers, but Tesla has been fighting to strike out on its own.

The bill now goes to the desk of Gov. Chris Christie for final approval.
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Electric700 · Mar 17, 2015

FlasherZ said: ↑

Barring a block from Christie (which IMO would be stupid), it appears that New Jersey will be able to sell Tesla vehicles again:

Tesla near a big win in New Jersey - Mar. 16, 2015
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Wow! I hope he signs it. Way to go New Jersey!

Danal · Mar 17, 2015

Woo Hoo! If NJ does this, ammunition for other states...!

FlasherZ · Mar 18, 2015

Tesla-inspired direct sales bill signed into law | NJBIZ

Yay!

That said, I still think Christie is a slimeball and think it's BS that he says:

“I said last year that if the Legislature changed the law, I would sign new legislation put on my desk and that is exactly what I’m doing today,” Christie said. “We’re pleased that manufacturers like Tesla will now have the opportunity to establish direct sales operations for consumers in a manner lawfully in New Jersey.”
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...which doesn't address why he didn't just direct his administration to interpret the law correctly in the first place -- unfortunately that's the way the game is played.

What's interesting is that the law has a restriction that limits it to those manufacturers licensed prior to Jan, 2014, meaning Tesla only and no new entrants in New Jersey. I suppose the NJ dealers' association could always sue, crafting some sort of equal protection argument, but it would be a risky move because it could open the court up to declaring that it applies to any manufacturer.

JohnQ · Mar 18, 2015

They really had to carve out a narrow space, didn't they? pre-2014 license holders, 4 sales locations, 1 service location. At least the nose of the camel is in the tent.

FlasherZ · Mar 18, 2015

JohnQ said: ↑

They really had to carve out a narrow space, didn't they? pre-2014 license holders, 4 sales locations, 1 service location. At least the nose of the camel is in the tent.
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I suspect it keeps dealers happy because it's very narrowly tailored, but keeps everyone else happy because it will go to prove the success of the model, which will be expanded later.

mdevp · Mar 18, 2015

JohnQ said: ↑

They really had to carve out a narrow space, didn't they? pre-2014 license holders, 4 sales locations, 1 service location. At least the nose of the camel is in the tent.
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Four locations is doable, b/c most people in NJ live near manhattan or the philly area. But only extra service station may be a tad light for the future, time will tell.

CliffG · Mar 18, 2015

mdevp said: ↑

Four locations is doable, b/c most people in NJ live near manhattan or the philly area. But only extra service station may be a tad light for the future, time will tell.
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I'm pretty sure it's "at least one service facility." There are presently two: Paramus and Springfield. Let's see what, if anything, pops up in Central and/or South Jersey.

FlasherZ · Mar 18, 2015

mdevp said: ↑

Four locations is doable, b/c most people in NJ live near manhattan or the philly area. But only extra service station may be a tad light for the future, time will tell.
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Tesla is required to operate a MINIMUM of one service center in the state, to address the common dealers' argument that a manufacturer could leave customers in the lurch for local service.

From the bill:

6. (New section) Notwithstanding the provisions of any law, rule or regulation to the contrary, a motor vehicle franchisor licensed pursuant to R.S.39:10-19 on or prior to January 1, 2014 and exclusively manufacturing zero emission vehicles may buy from and sell, offer to sell, or deal to a consumer a zero emission vehicle, provided that the franchisor owns or operates, directly or indirectly:
(1) no more than four places of business in the State; and
(2) at least one retail facility for the servicing, including warranty servicing, of zero emission vehicles sold, offered for sale, or otherwise distributed in this State. This facility shall be furnished with all the equipment required to service a zero emission vehicle.
A franchisor shall not be required to establish or operate a place of business at a retail facility for the servicing of zero emission vehicles.
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Also of note is the new requirement that all dealers report to the state their sales of zero-emission vehicles yearly:

7. (New section) Before March 1 annually, all motor vehicle franchisors and motor vehicle franchisees in the State, as defined pursuant to section 1 of P.L.1985, c.361 (C.56:10-26), shall report to the Division of Taxation the number of zero emission vehicles sold in the State each calendar year and exempt from the tax imposed under the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.) pursuant to section 11 of P.L.2003, c.266 (C.54:32B-8.55).
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...presumably so they know how much tax revenue they're losing out on.

TexasEV · Mar 18, 2015

Note the use of the therm "franchisor" in the law. They're sticking to the fiction that a manufacturer who doesn't have any franchised dealers is still a "franchisor".

jaguar36 · Mar 19, 2015

Has anyone heard anything about another service center being opened in NJ? I had originally thought this bill was going to require an additional service center from Tesla, but either I misunderstood, or that language was changed. I'd love to see a new location down here in the Philly area.

Electric700 · Mar 19, 2015

This is very very good news. It's a step forward for New Jersey, for consumer freedom, and for no-hassle direct sales!

New Jersey senate signs bill for Tesla sales in NJ, sends it to Gov. Christie

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