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Tesla Sales Banned in New Jersey... hopefully not for long!

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Lawmaker answers Christie's call on Tesla electric car sales

http://www.nj.com/politics/index.ss..._tesla_electric_car_sales.html#incart_m-rpt-1

By Jenna Portnoy/The Star-Ledger
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on March 21, 2014 at 4:25 PM, updated March 21, 2014 at 5:38 PM




TRENTON — A Bergen County lawmaker has introduced a bill that would let electric car retailers, like Tesla Motors Inc., sell directly to consumers.


State Assemblyman Tim Eustace (D-Bergen), the primary sponsor, said the bill would trump a March 11 decision by the Motor Vehicle Commission which effectively banned sales of Tesla’s Model S. The luxury car maker has showrooms in Short Hills and Paramus, which is in Eustace’s district.


“What we should be doing is supporting American entrepreneurs and American businesses,” said Eustace, who drives an all-electric Nissan Leaf.


The measure would exempt cars from the franchise rule, according to a draft of the bill (A2986) obtained by The Star-Ledger.


State Sen. Raymond Lesniak (D-Union), who has introduced dealer-backed legislation (S927) that favors car dealerships in their dealings with manufacturers, said he will offer an amendment that could let Tesla operate independently until electric cars reach a critical mass.


He suggested 4 percent of all cars sold in the U.S., which is in line with President Obama’s pledge to put 1 million plug-in vehicles on the road by 2018.


Gov. Chris Christie, who chooses MVC board members, has said only the Legislature can change an existing law that critics say gives auto dealerships a monopoly on car sales.


"I’m not pushing Tesla out; the state Legislature did," Christie said this week. "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."
 
The 'threshold' compromises are worthless like they were talking about in Texas and here. Once you get too successful then you have to be forced to be less efficient.....makes sense?

Exactly. See, the thing I don't get is we have another presidential election soon. So I would think whoever is running would want to back Tesla as soon as possible. Why? Because it's an American made car that's about to make more jobs with the gigafactory and at what time do Americans become more patriotic about what we do here than during this race? You gotta think beyond tomorrow and none of them are doing that.
 
4% cap?

Lawmaker answers Christie's call on Tesla electric car sales

http://www.nj.com/politics/index.ss..._tesla_electric_car_sales.html#incart_m-rpt-1

By Jenna Portnoy/The Star-Ledger
Email the author | Follow on Twitter
on March 21, 2014 at 4:25 PM, updated March 21, 2014 at 5:38 PM




TRENTON — A Bergen County lawmaker has introduced a bill that would let electric car retailers, like Tesla Motors Inc., sell directly to consumers.


State Assemblyman Tim Eustace (D-Bergen), the primary sponsor, said the bill would trump a March 11 decision by the Motor Vehicle Commission which effectively banned sales of Tesla’s Model S. The luxury car maker has showrooms in Short Hills and Paramus, which is in Eustace’s district.


“What we should be doing is supporting American entrepreneurs and American businesses,” said Eustace, who drives an all-electric Nissan Leaf.


The measure would exempt cars from the franchise rule, according to a draft of the bill (A2986) obtained by The Star-Ledger.


State Sen. Raymond Lesniak (D-Union), who has introduced dealer-backed legislation (S927) that favors car dealerships in their dealings with manufacturers, said he will offer an amendment that could let Tesla operate independently until electric cars reach a critical mass.


He suggested 4 percent of all cars sold in the U.S., which is in line with President Obama’s pledge to put 1 million plug-in vehicles on the road by 2018.


Gov. Chris Christie, who chooses MVC board members, has said only the Legislature can change an existing law that critics say gives auto dealerships a monopoly on car sales.


"I’m not pushing Tesla out; the state Legislature did," Christie said this week. "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."

What they should really do is write a law that says that if a manufacturer chooses to allow a privately owned franchise in the state, then all cars must be sold through a franchise. But if a manufacturer doesn't want any franchises in the state, then they don't have to sell through them—or something like that.
 
What they should really do is write a law that says that if a manufacturer chooses to allow a privately owned franchise in the state, then all cars must be sold through a franchise. But if a manufacturer doesn't want any franchises in the state, then they don't have to sell through them—or something like that.

I'd go a step further ... since Apple / Barnes & Noble / etc. don't seem to need any special laws to protect relationships with brick & mortar resellers, I don't see why we need any of these laws, either. Dealerships can rely on contracts with the manufacturers, that likely already specify size of territory, etc. I don't see why they need laws in addition to contracts for protection. What other industry has that?

Contracts. Use 'em.
 
I don't agree with everything he says, but even Newt Gingrich has weighed in:

Christie and Tesla | Gingrich Productions

Wanna guess which way?
Wow, I'm scared -- I agree with everything in this article. I'm not sure I've ever agreed with Newt's policy position before...

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Opinion piece at CNN.com written by John O'Dell at Edmunds.com stating that Tesla should stop fighting the dealers. He argues:
  1. Tesla eventually needs dealers for Gen 3
  2. Dealers pump lots of money into the local economy, thus have value and clout
  3. Lexus successfully hand picked good dealers to get started
  4. Dealers add value to the ownership experience

I would agree with #1.
#2 is a silly argument, at least the value portion since the money they pump into the local economy comes from their role as a middleman. Tesla still has to service the vehicle, adding jobs and a tax base locally.
#3 is a last ditch solution
#4 is simply flat out wrong, at least in my experience with dealers and Tesla.

Opinion: Why Tesla should stop fighting auto dealers - CNN.com
Re #1, why does Tesla need dealerships, ever? I can only think of one vaguely plausible reason: Tesla (or any company) will find it logistically challenging to grow by an order of magnitude and maintain high standards of customer service. But Tesla's done a lot of logistically challenging things in the past five years, and I don't see expanding a sales and service network to be anything harder than basic blocking-and-tackling.

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What they should really do is write a law that says that if a manufacturer chooses to allow a privately owned franchise in the state, then all cars must be sold through a franchise. But if a manufacturer doesn't want any franchises in the state, then they don't have to sell through them—or something like that.
That's what Massachusetts HB 241 would do: an all-or-nothing approach. OEMs with dealers are stuck with them, ensuring the incumbent dealers are allowed to continue in their current form, but new entrants can decide whether to use dealers (or not). As a TSLA shareholder, I like this approach: keep the millstone of dealerships firmly around Tesla's competitors, while freeing Tesla to be efficient and responsive.
 
Re #1, why does Tesla need dealerships, ever? I can only think of one vaguely plausible reason: Tesla (or any company) will find it logistically challenging to grow by an order of magnitude and maintain high standards of customer service. But Tesla's done a lot of logistically challenging things in the past five years, and I don't see expanding a sales and service network to be anything harder than basic blocking-and-tackling.

Right. More sales, more stores, more service centers. Or in the Franchisetastic Four states, more independent delivery companies. :p

On top of that, I've just realized an additional benefit of Tesla's approach of direct sales and not-for-profit service: they can encourage qualification by independent technicians.
 
inspired by the fuel gauge, I searched for a way that transports the impression of inevitability a bit more... sort of...

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