Friday, June 6, 2014

Tesla Breaks New Jersey Barrier

You may have heard about the the state of New Jersey banning the direct sales of vehicles like Tesla does in their state. Well there are a few other states that have this problem. But not for long!


New Jersey now has the Bill A3216

"The famous Bill (A3216) is making its way to the state Assembly Consumer Affairs Committee, which approved Tesla Motors to restart the sales of its Model S in the state of New Jersey, as well as open two more stores. This means there is little to no chance it would stall. You can read our previous stories here, where you see how New Jersey and its high-profile Senator were entangled in the automotive direct sales fiasco, heavily backed by the automotive dealerships association. And in case you were wondering, the vote was unanimous, 4-0.

This sets a precedent to disruptive business models, such as Tesla’s. It also should serve as a clear sign to political shenanigans that when consumers ask for something, it might be a good idea to listen and scale back on the heavy lobby pressures. As I wrote on Teslarati, “opposition becomes a formidable tool for freedom of choice.”

Tesla Motors vice president of business development Diarmuid O’Connell talked to the committee and said: “This is a super important issue for us in New Jersey, and as some of you would know, nationally as well,” O’Connell said, adding the bill would “allow us to in a modest way and a reasonable way conduct the business of educating the public about electric vehicles and getting as many of those vehicles on the road as quickly as possible.”

Assemblyman Tim Eustace (D-Bergen) who publicly backed the bill said: “New Jersey prides itself as being pro-business, pro-innovative and pro-jobs. And this is a company that is an American company, an American idea. I think we would be mistaken if we didn’t’ reverse the idea that the MVC made, making it illegal to sell Teslas in New Jersey.”

Next step for Tesla Motors

At this stage, we can only wonder how Arizona and Texas will react to this Tesla Motors news that was banned from selling directly i New Jersey. Ohio was next, but seeing the fiasco, decided to invite the company to the table for negotiations. This means states wondering how to “regulate” free market will have to carefully weigh their decisions in the future."