New Jersey hates the free market, bans sales of Tesla cars

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#1 Posted by Aljosa23 (25113 posts) -

Tesla was dealt a crushing blow in New Jersey today after the state's Motor Vehicle Commission passed a rule that will prevent the company from selling its electric cars directly to consumers starting in April. Unlike other automakers, Tesla sells its Model S through company-owned retail stores — a business model that cuts out the franchised auto dealerships that have ruled the market for decades. New Jersey is the third US state to ban car manufacturers from selling directly to customers, joining Texas and Arizona. But unlike those two states, New Jersey is home to a booming luxury vehicle market, making this a major loss for Tesla.

As you might guess, Tesla is outraged by the decision. In a blog post, the company blasted Governor Chris Christie's administration for deceitful tactics. Tesla claims that Christie previously agreed to delay the proposed amendment, which would have allowed "a fair process" in the state legislature. But yesterday — just 24 hours before the amendment was hurriedly passed — Tesla says it abruptly received word that Christie's administration "had gone back on its word." Tesla says the amendment "is an affront to the very concept of a free market." And the company insists this isn't just about cutting out the middleman; Tesla says full control over the buying experience is necessary to properly educate car buyers about the benefits that come with going electric.

http://www.theverge.com/2014/3/11/5497638/tesla-sales-banned-in-new-jersey

cryingeagle.jpg

I would ask why this is happening but let's not kid ourselves, car manufacturers are scared of Tesla so they resort to lobbying for this kind of crap.

#2 Edited by edinsftw (4238 posts) -

Yea thats bullshit, any other business can sell directly to customers.

#3 Posted by TheWalkingGhost (5419 posts) -

Ok? Then just franchise the dealerships. Problem solved.

#4 Posted by Master_Live (14789 posts) -

Let my Tesla go.

#5 Posted by Aljosa23 (25113 posts) -

@TheWalkingGhost said:

Ok? Then just franchise the dealerships. Problem solved.

Why can I walk into an Apple store and buy an iPad in NJ but not walk into a Tesla store and buy a car? It just makes no sense.

#6 Posted by lostrib (37590 posts) -

That is dumb as hell

#7 Edited by Master_Live (14789 posts) -

Conflicting interests won't let it happen:

New Jersey To Tesla: You're Outta Here

Like many other dealer groups across the country, New Jersey dealers did not want Tesla to be able to sell cars directly to customers.

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

And that is that.

#8 Posted by LostProphetFLCL (17491 posts) -

Crap decision from the state whose governor has the most redundant name in politics...

#9 Posted by SaintLeonidas (26319 posts) -

Reason #9,865,001 never to go to New Jersey.

#10 Posted by limpbizkit818 (15042 posts) -

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

#11 Posted by dave123321 (34130 posts) -

@Aljosa23: you can buy an ipad outside of apple stores in nj though

#12 Edited by Aljosa23 (25113 posts) -

@limpbizkit818 said:

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

That does not change anything. It is still a stupid "law" and entirely goes against the "Pro-Business" stance of the GOP.

#13 Posted by Aljosa23 (25113 posts) -

@dave123321 said:

@Aljosa23: you can buy an ipad outside of apple stores in nj though

And? That was Apple's decision not the government's. Besides, there are plenty of other brands that only sell at their specialty stores like Gucci yet there's somehow an issue when a car company does it.

#14 Posted by dave123321 (34130 posts) -

@Aljosa23: just saying that an argument needs to be sound

#15 Posted by dave123321 (34130 posts) -

I agree with you, aljosa

#16 Edited by limpbizkit818 (15042 posts) -

@Aljosa23 said:

@limpbizkit818 said:

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

That does not change anything. It is still a stupid "law" and entirely goes against the "Pro-Business" stance of the GOP.

It's not a law, but a ruling passed by the New Jersey Motor Vehicle Commission. NJ says that it was made clear to Tesla that if the direct-sales method was to be used, then Tesla would need to change the state's law. Tesla is mad that they are not getting special treatment and that the ruling was not pushed back (aka blocked).

#17 Edited by Aljosa23 (25113 posts) -

@limpbizkit818 said:

@Aljosa23 said:

@limpbizkit818 said:

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

That does not change anything. It is still a stupid "law" and entirely goes against the "Pro-Business" stance of the GOP.

It's not a law, but a ruling passed by the New Jersey Motor Vehicle Commission. NJ says that it was made clear to Tesla that if they wanted to sell cars their way, then Tesla would need to change the state's law. Tesla is mad that they are not getting special treatment and that the ruling was not pushed back (aka blocked).

What exactly is the point you are trying to make? I am saying this law/ruling/it does not matter what it is called right now is stupid and simply a ploy by other manufacturers to fuck Tesla. Wanting to sell your product directly to consumers like every single company in existence is not "special treatment".

#18 Posted by dave123321 (34130 posts) -

I wonder how many companies have direct sales

#19 Posted by playmynutz (6046 posts) -

Wow Tesla cars are awesome

#20 Edited by the_bi99man (11047 posts) -

Good to have further confirmation that New Jersey is run by retards. As if we didn't already know.

#21 Posted by limpbizkit818 (15042 posts) -

@Aljosa23 said:

@limpbizkit818 said:

@Aljosa23 said:

@limpbizkit818 said:

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

That does not change anything. It is still a stupid "law" and entirely goes against the "Pro-Business" stance of the GOP.

It's not a law, but a ruling passed by the New Jersey Motor Vehicle Commission. NJ says that it was made clear to Tesla that if they wanted to sell cars their way, then Tesla would need to change the state's law. Tesla is mad that they are not getting special treatment and that the ruling was not pushed back (aka blocked).

What exactly is the point you are trying to make? I am saying this law/ruling/it does not matter what it is called right now is stupid and simply a ploy by other manufacturers to fuck Tesla. Wanting to sell your product directly to consumers like every single company in existence is not "special treatment".

My point is that you should have included NJ's response in your OP in order to give a better picture of the issue. Tesla does want special treatment. They wanted the ruling blocked and the current laws (even if they suck) subverted.

Let me get this straight: You want NJ to delay a ruling by one of its own state agencies in order to protect the right of a billion dollar corporation (Tesla) to have access to free market competition? Funny, if the details of this story where a little different I could see you crying about how the very same Pro-Business GOP were selling out to business interest. But since you like Tesla, I guess this is different. Damn if you do, damn if you don't.

#22 Posted by Aljosa23 (25113 posts) -

@limpbizkit818 said:

@Aljosa23 said:

@limpbizkit818 said:

@Aljosa23 said:

@limpbizkit818 said:

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

That does not change anything. It is still a stupid "law" and entirely goes against the "Pro-Business" stance of the GOP.

It's not a law, but a ruling passed by the New Jersey Motor Vehicle Commission. NJ says that it was made clear to Tesla that if they wanted to sell cars their way, then Tesla would need to change the state's law. Tesla is mad that they are not getting special treatment and that the ruling was not pushed back (aka blocked).

What exactly is the point you are trying to make? I am saying this law/ruling/it does not matter what it is called right now is stupid and simply a ploy by other manufacturers to fuck Tesla. Wanting to sell your product directly to consumers like every single company in existence is not "special treatment".

My point is that you should have included NJ's response in your OP in order to give a better picture of the issue. Tesla does want special treatment. They wanted the ruling blocked and the current laws (even if they suck) subverted.

Let me get this straight: You want NJ to delay a ruling by one of its own state agencies in order to protect the right of a billion dollar corporation (Tesla) to have access to free market competition? Funny, if the details of this story where a little different I could see you crying about how the very same Pro-Business GOP were selling out to business interest. But since you like Tesla, I guess this is different. Damn if you do, damn if you don't.

I don't really give a shit what NJ's rationalization of their stupid law is or why they even have such a dumb law to begin with nor do I see why it even matters.

The thing is they ARE selling out to business interests. But yes since I do like Telsa this is why I posted it, which should be obvious to anyone. Doesn't change the fact it is dumb.

#23 Posted by Storm_Marine (11117 posts) -

I never knew you to be a champion of teh free market Aljosa.

#24 Edited by theone86 (20555 posts) -

@limpbizkit818 said:

@Aljosa23 said:

@limpbizkit818 said:

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

That does not change anything. It is still a stupid "law" and entirely goes against the "Pro-Business" stance of the GOP.

It's not a law, but a ruling passed by the New Jersey Motor Vehicle Commission. NJ says that it was made clear to Tesla that if the direct-sales method was to be used, then Tesla would need to change the state's law. Tesla is mad that they are not getting special treatment and that the ruling was not pushed back (aka blocked).

Is this some sort of poor attempt at a justification? I'm honestly not sure. Saying that something is a certain way is not the same thing as saying it should be that way. All you seem to be doing is appealing to authority.

They're also not asking for special treatment, they're asking that the law be amended for everybody.

#25 Posted by limpbizkit818 (15042 posts) -

@theone86 said:

@limpbizkit818 said:

@Aljosa23 said:

@limpbizkit818 said:

Should have been posted in the OP:

Christie spokesman Kevin Roberts said, “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning.”

That does not change anything. It is still a stupid "law" and entirely goes against the "Pro-Business" stance of the GOP.

It's not a law, but a ruling passed by the New Jersey Motor Vehicle Commission. NJ says that it was made clear to Tesla that if the direct-sales method was to be used, then Tesla would need to change the state's law. Tesla is mad that they are not getting special treatment and that the ruling was not pushed back (aka blocked).

Is this some sort of poor attempt at a justification? I'm honestly not sure. Saying that something is a certain way is not the same thing as saying it should be that way. All you seem to be doing is appealing to authority.

They're also not asking for special treatment, they're asking that the law be amended for everybody.

Justification? Appealing to authority? I'm not sure what your first paragraph is even addressing.......

You're right that they want to law changed. That's exactly what Mr. Roberts said: "it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law"

#26 Posted by lamprey263 (24135 posts) -

Great, that's what the world really needs, sleazy salespeople to trick people out of their money.

#27 Edited by foxhound_fox (88688 posts) -

@Aljosa23 said:

@TheWalkingGhost said:

Ok? Then just franchise the dealerships. Problem solved.

Why can I walk into an Apple store and buy an iPad in NJ but not walk into a Tesla store and buy a car? It just makes no sense.

I don't remember the last time there was a direct-to-customer auto dealer in North America. Pretty much all of them that I know of buy cars from the manufacturer at a reduced cost and garner profits from marking up the factory cost to or something around the MSRP.

#28 Edited by Aljosa23 (25113 posts) -

@foxhound_fox said:

@Aljosa23 said:

@TheWalkingGhost said:

Ok? Then just franchise the dealerships. Problem solved.

Why can I walk into an Apple store and buy an iPad in NJ but not walk into a Tesla store and buy a car? It just makes no sense.

I don't remember the last time there was a direct-to-customer auto dealer in North America. Pretty much all of them that I know of buy cars from the manufacturer at a reduced cost and garner profits from marking up the factory cost to or something around the MSRP.

Do you mean auto dealer in North America like a company from NA OR just one that sells its cars here? Because I am pretty sure luxury automobile companies have their own special stores since I can not walk to my local car dealership and pick up an Aston Martin or Rolls Royce lol. Teslas would qualify as luxury cars. In fact, luxury products in general sell directly to the consumer.

#29 Posted by plageus900 (1081 posts) -

Holy shit, I agree with Aljosa23.

#30 Posted by GIJames248 (2176 posts) -

This might be unexpected if we didn't have national social security and welfare already in place, but really, looking at the state of property rights from the last fifty years, this is totally predictable.

#31 Posted by LJS9502_basic (151391 posts) -

I'd have to look at the business law in those states to come to a conclusion. If there are specific criteria that must be met.....then Tesla would have to meet that. Otherwise, they have an unfair advantage over other companies. Not enough info to form a conclusion.

#32 Posted by comp_atkins (31473 posts) -

wouldn't a proponent of a free market be in favor of direct to consumer selling? someone found a more innovative way to do something that makes it cheaper than their competitors. isn't that the whole freaking point?!?

#33 Posted by Serraph105 (28144 posts) -

The governor also banned certain types of bullets. He clearly wants to keep the boot of the government on the neck of the citizens.

#34 Posted by GazaAli (22962 posts) -

Yea, it appears some lobbyists were not too fond of Tesla's decision to cut the middleman. So much for free market and creative destruction.

#35 Posted by Master_Live (14789 posts) -

@comp_atkins said:

wouldn't a proponent of a free market be in favor of direct to consumer selling?

I would favor the car maker selling however they decide it is better for them.

#36 Posted by comp_atkins (31473 posts) -

@Master_Live said:

@comp_atkins said:

wouldn't a proponent of a free market be in favor of direct to consumer selling?

I would favor the car maker selling however they decide it is better for them.

who is "they" though? consumers? auto makers? dealership owners?

#37 Posted by Master_Live (14789 posts) -

Auto makers.

#38 Posted by Crunchy_Nuts (2749 posts) -

@LJS9502_basic said:

I'd have to look at the business law in those states to come to a conclusion. If there are specific criteria that must be met.....then Tesla would have to meet that. Otherwise, they have an unfair advantage over other companies. Not enough info to form a conclusion.

Yes. The criteria is that they must sell through a dealer which they do not own. Basically the state is propping up an entire industry which would pretty much collapse if it had to actually compete fairly.

#39 Edited by comp_atkins (31473 posts) -

@Crunchy_Nuts said:

@LJS9502_basic said:

I'd have to look at the business law in those states to come to a conclusion. If there are specific criteria that must be met.....then Tesla would have to meet that. Otherwise, they have an unfair advantage over other companies. Not enough info to form a conclusion.

Yes. The criteria is that they must sell through a dealer which they do not own. Basically the state is propping up an entire industry which would pretty much collapse if it had to actually compete fairly.

pretty much. it's 2014, consumers ought to have the option to purchase a new car directly from a manufacturer rather than a franchised dealership. if they want all the extras/service that comes from a dealship, that could be an option as well, but it shouldn't be mandated by law. that will require a change in the state's laws, however, which doesn't appear to be happening anytime soon.

#40 Posted by magicalclick (22792 posts) -

I am pro retailers. Sure I prefer to buy in Microsoft Stores or Apple stores, but, that's my choice, not because that's the only choice. Until I can buy Tasla in retails, I will not support Tasla. It is disrespectful to cut the retail out.

#41 Posted by Jd1680a (5945 posts) -

Nearly all states in the US it is illegal for a car manufacture to sell directly to a customer. There have to be a middle man in the business of selling cars. Main reason this have happened is the auto dealerships have a huge chunk of money in state legislators to make it a law.

Im wonder if Tesla could fight the state laws on selling cars to consumers on constitutional grounds.