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

[RobStark]

Hope Tesla has enough power later on to change this but until they do they can sell a limited number in NJ up to 3.99% then say 'sold in in NJ for the year!'

Better yet,have a huge sign in front of Tesla stores and popup adds for NJ residents at teslamotors.com that says call your local state Representative at @#!-&^%* and your local state Senator at #$%-$%# facebook page yada yada yada and ask him why you can't have a Tesla until next year.

 

[pbleic]

Tesla Sales Banned in New Jersey

The bill number has changed as more have signed on, yes, it's a compromise but let's just kick the can down the road when we get to 4%.

Good luck with that. Changing a recently changed law is more difficult than getting it right the first time.

Ps - it Ian't 4% Teslas. It is 4% ZEVs. If Leaf sales take off, they will crowd out Tesla sales.

 

[TexasEV]

http://www.njleg.state.nj.us/2014/Bills/A3500/3096_I1.PDF

or in HTML:
A3096

The bill allows ZEV manufacturers (and then, seemingly any manufacturer) to sell direct in the state as long as they sell less than 4% of the cars in a state. This seems a half way measure. Essentially, it says "there, there, you can sell your little toy cars as long as you aren't even modestly successful at it. Once that happens, you have to become an adult, like the rest of us."

In other words, you can sell EVs until they start to become a threat to the auto dealers cartel, and then we'll put a stop to it before it's too late. If too many consumers buy cars directly and like it, it will reach a tipping point of public pressure to change the law and the dealer-controlled legislators don't want to let that happen.

 

[JohnQ]

Good luck with that. Changing a recently changed law is more difficult than getting it right the first time.

Ps - it Ian't 4% Teslas. It is 4% ZEVs. If Leaf sales take off, they will crowd out Tesla sales.

You're right, but Leafs account for ~0.2% of US car sales. I expect it's a bit higher in NJ but couldn't easily find the data. Still makes sense to kick it down the road. Fight the larger battle when you're selling many more cars in the state and there's even more publicity/pain for consumers.

 

[dalalsid]

You're right, but Leafs account for ~0.2% of US car sales. I expect it's a bit higher in NJ but couldn't easily find the data. Still makes sense to kick it down the road. Fight the larger battle when you're selling many more cars in the state and there's even more publicity/pain for consumers.

Even if the number is 1% and not 4%, it really doesnt matter. As long as the stores can give test drives and talk price etc., they could work around sales restrictions and get the customer to order online or from NY. This whole rule is stupid.

 

[RobStark]

Even if the number is 1% and not 4%, it really doesnt matter. As long as the stores can give test drives and talk price etc., they could work around sales restrictions and get the customer to order online or from NY. This whole rule is stupid.

I just read the law, once ZEVs reach 4% market share ALL manufacturers are required to comply with dealer franchise law within one year.

Once total market share for BEV and FCEV reach 4% Tesla would be required to sell all cars through franchised dealerships.

 

[yobigd20]

The bill was approved with a 4-0 vote.

Pro-Tesla electric car bill advances in NJ Assembly | NJ.com

 

[dsm363]

I loved how they are concerned that if Tesla is successful it could hurt traditional dealership. So what? Where was the legislature banning Walmart from running mom and pop stores out of business?

 

[yobigd20]

if you read the nitty gritty details of the bill A3096 there is a line that says this: "Within 365 days after the number of zero emission vehicles sold in this State in any calendar year equals four percent or more of all the motor vehicles sold, all manufacturers of zero emission vehicles in the State shall comply with the provisions of P.L.1985, c.361 (C.56:10-26 et seq.), and any rules and regulations adopted pursuant thereto. "

what that means is that as soon as the total number of zero emission vehicles sold is less than four percent of all vehicles sold Statewide per year, all ZEV manufacturers will NO LONGER be allowed to sell direct and will have to go back to using the dealership model.

This bill is hardly a win at all. Especially for the new guy. The big leaders are Tesla and Nissan and as soon as the number of Tesla's and Leafs sold reach 4%, Tesla will be forced to close stores once again (or at least be prevented from selling cars at the "galleries"), and any new company wanting to sell zero emission vehicles is ****-out-of-luck. IMO this bill SUCKS and is hardly a step forward to free markets.

 

[TexasEV]

I agree it's a protectionist law that will stop direct sales before it becomes too popular and threatens the dealer cartel, but on the other hand 4% is a lot of ZEVs. With about 500,000 new car sales in NJ per year, that's 20,000 Teslas, Leafs, i3 (without range extender), etc. per year. It will take a long time for EV sales to reach that level in the state.

 

[JakeP]

I loved how they are concerned that if Tesla is successful it could hurt traditional dealership. So what? Where was the legislature banning Walmart from running mom and pop stores out of business?

+1 to this. The only difference is that the Mom and Pop stores failed to consistently line the pockets and grease the palms of the local politicians, like the dealerships have.

 

[RobStark]

I agree it's a protectionist law that will stop direct sales before it becomes too popular and threatens the dealer cartel, but on the other hand 4% is a lot of ZEVs. With about 500,000 new car sales in NJ per year, that's 20,000 Teslas, Leafs, i3 (without range extender), etc. per year. It will take a long time for EV sales to reach that level in the state.

Right now ZEVs are 1.4% of the CA automotive market.

 

[dalalsid]

I just read the law, once ZEVs reach 4% market share ALL manufacturers are required to comply with dealer franchise law within one year.

Once total market share for BEV and FCEV reach 4% Tesla would be required to sell all cars through franchised dealerships.

I agree it's a protectionist law that will stop direct sales before it becomes too popular and threatens the dealer cartel, but on the other hand 4% is a lot of ZEVs. With about 500,000 new car sales in NJ per year, that's 20,000 Teslas, Leafs, i3 (without range extender), etc. per year. It will take a long time for EV sales to reach that level in the state.

Right now ZEVs are 1.4% of the CA automotive market.

Hmm so we are maybe a decade away from 4% ZEVs in NJ? At which point this whole debacle will happen again and by that time there will be 1000s of Tesla owners ready to march to the capital as opposed to the 10s of people now. Every battle is a big win for Tesla even if they lose.

 

[Ven Rala]

The 4% issue is a small price to pay to get this law reversed. I agree with dalalsid that once they are 4% of all new sales it will be too difficult to turn back

 

[dsm363]

Tesla Sales Banned in New Jersey

The 4% issue is a small price to pay to get this law reversed. I agree with dalalsid that once they are 4% of all new sales it will be too difficult to turn back

Apparently it isn't just Tesla but the Nissan Leaf and any other ZEVs too. If EVs really catch on you'd expect the Leaf to sell many more than Tesla due to price alone.

 

[RobStark]

Apparently it isn't just Tesla but the Nissan Leaf and any other ZEVs too. If EVs really catch on you'd expect the Leaf to sell many more than Tesla due to price alone.

Not until they have at least 150 mile EPA range for not a lot more money.

 

[mpt]

Yesterday, the Assembly voted unanimously to support the bill, actually, whilst working through the huge number of people that attended to give testimony, the chairman was basically saying, we're going to say yes, say what you came here to say quickly so we can do this and get out of here!

Shout out for Diarmuid and Jonathan who flew in from CA to testify in-person - good to know the support runs from the ground floor to the executive suite.

Next stop is the Senate, hopefully in a week or so. Fingers crossed, we're not done yet but there are a lot of people on the right side.

 

[CalDreamin]

The 4% issue is a small price to pay to get this law reversed. I agree with dalalsid that once they are 4% of all new sales it will be too difficult to turn back

I can't find any mention of a 4% issue in the text of NJ Assembly Bill No. 3216. The bill contains a limit of 4 locations to engage in direct sales by an EV auto manufacturer in NJ.

- - - Updated - - -

Yesterday, the Assembly voted unanimously to support the bill, actually, whilst working through the huge number of people that attended to give testimony, the chairman was basically saying, we're going to say yes, say what you came here to say quickly so we can do this and get out of here!

Shout out for Diarmuid and Jonathan who flew in from CA to testify in-person - good to know the support runs from the ground floor to the executive suite.

Next stop is the Senate, hopefully in a week or so. Fingers crossed, we're not done yet but there are a lot of people on the right side.

.

The NJ legislature's website says yesterday's vote was an Assembly committee. It still needs to be approved by the full Assembly. NJ residents should contact their state Assembly members and ask them to vote yes on Assembly Bill No. 3216, and contact their NJ state senator to ask them to support Senate Bill 2098, the identical bill in the state senate.

 

[RobStark]

I can't find any mention of a 4% issue in the text of NJ Assembly Bill No. 3216. The bill contains a limit of 4 locations to engage in direct sales by an EV auto manufacturer in NJ.

- - - Updated - - -

.

The NJ legislature's website says yesterday's vote was an Assembly committee. It still needs to be approved by the full Assembly. NJ residents should contact their state Assembly members and ask them to vote yes on Assembly Bill No. 3216, and contact their NJ state senator to ask them to support Senate Bill 2098, the identical bill in the state senate.

The bill with 4% language was Assembly Bill 3096.
A3096


So the Assembly committee scrapped 3096 in favor of 3216 which does not contain the 4% language?



Just read A3216

http://www.njleg.state.nj.us/2014/Bills/A3500/3216_I1.PDF

Allows four stores to ZEV exclusive manufacturers but no 4% market share limit before franchised dealers become mandatory.

 

[dsm363]

That is great. The four store limit would be much easier to strike down as it makes no sense.