New Jersey gives Tesla two more weeks to direct sell

The state of New Jersey extends the enforcement of a law that would ban the direct selling to consumers of automobiles to April 15.

The two-week extension will give Tesla Motors (TSLA) an opportunity to work out a deal with the dealership association in the state.

Many automobile industry analysts think Tesla will keep chipping away at the dealer stranglehold in the U.S. with piecemeal deals.

Related: It's academic: Consumers don't need dealerships

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Comments (20)
  • AlphaCoils
    , contributor
    Comments (370) | Send Message
    I bet the NJ sales ban will never see the light of day. By the time the two weeks are up, it will either be repealed outright, or given another extension!
    28 Mar 2014, 08:43 AM Reply Like
  • Dan Fichana
    , contributor
    Comments (1918) | Send Message
    Let us not forget the 2 bills in the assembly and senate in NJ being proposed to allow Tesla to sell direct.


    One by assemblyman Tim Eustace, the other by senator Ray Lesniak.
    28 Mar 2014, 08:49 AM Reply Like
  • arondaniel
    , contributor
    Comments (1876) | Send Message
    Ok, sure! Make a direct-sales exception for tiny little tesla or other EV-only brands. Don't worry... they'll never pose any kind of real threat.


    Good news for Tesla I think. They get to keep their customer and profit friendly direct sales model and then pull the ladder up after them.
    28 Mar 2014, 11:57 AM Reply Like
  • true.north
    , contributor
    Comments (311) | Send Message
    Well then the politicians shouldn't have messed with what was working in the first place.
    28 Mar 2014, 08:40 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3424) | Send Message
    "work out a deal" someones pockets are getting lined somehow. Have some fine pie Mr dealership association.
    28 Mar 2014, 08:54 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
    What this meant in Ohio is that Tesla negotiated directly with the dealer organization to have one additional store in Ohio plus the two they already have and then the door would be shut after them. No more direct sales stores by any car manufacturer, including Tesla. How this gets set into law I do not know.
    28 Mar 2014, 10:50 AM Reply Like
  • markwbrooks
    , contributor
    Comments (144) | Send Message
    And meanwhile GM is scrambling trying to get ready to test a direct sales model of its own, even as it publically applauds New Jerseys move, and privately try's to find a path that will reduce the cost and huge profit drag from its own dealers.
    Any bets that GM can do this without a company killing/ messy lawsuit from its own dealers?


    Not likely without a massive fight right? Thus the primary reason why Tesla and its sales model will destroy the old fashion auto manufactures.


    At least GM is awake and trying to do something about it! Ford looks like it is just sleep walking into oblivion.


    28 Mar 2014, 09:04 AM Reply Like
  • Wadermaker.
    , contributor
    Comment (1) | Send Message
    New Jersey is not thinking of the enviornment. The old boy network is thriving in that state.
    28 Mar 2014, 09:43 AM Reply Like
  • Reel Ken
    , contributor
    Comments (6665) | Send Message
    Let's see, we're expecting an a-political decision from a State that brought us the "Sopranos", Jon Corzine and Chris Christie.


    Follow the money, follow the money.
    28 Mar 2014, 09:47 AM Reply Like
    , contributor
    Comments (35) | Send Message
    When government sticks it's nose in private business, we all lose! Hope Tesla tells them to shove it!
    28 Mar 2014, 09:48 AM Reply Like
  • Livin the Dream
    , contributor
    Comments (19) | Send Message
    Sad the dealers have bribed the politicians to create laws that make life more difficult for us... (OOPS - that is what politicians do by definition...)
    28 Mar 2014, 10:47 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3424) | Send Message
    they aren't technically bribes... they just invent a new tax or fee that serve to benefit their interests. I call it fine pie they call it a tax
    28 Mar 2014, 10:50 AM Reply Like
  • surferbroadband
    , contributor
    Comments (5244) | Send Message
    Christy will not get the Republican Party Nomination in 2016. Closes bridges, shuts down direct selling of cars and is a fatso.


    Rick Perry on the other hand has a shot at it. He doesn't close bridges, wants to allow direct selling


    here is the link



    and has a much thinner waistline.
    28 Mar 2014, 11:43 AM Reply Like
  • SoCalNative+(RIP)
    , contributor
    Comments (651) | Send Message
    Wasn't Christy cleared in the whole bridge debacle?
    28 Mar 2014, 12:04 PM Reply Like
  • TAS
    , contributor
    Comments (3983) | Send Message
    TESLA had better unionize their plants and invest in a small army of state lobbyists.
    This will provide a better return for shareholders than bitching about the system and losing political battles. It is time to play ball with entrenched interests that call the shots.


    And a large pile of cash to satiate political coffers wouldn't hurt, either.
    28 Mar 2014, 11:45 AM Reply Like
  • videomagik
    , contributor
    Comments (59) | Send Message
    Thanks Tas for that brilliant assessment of a system of bribes, corruption and capitalism at it's finest. Yes, at all costs we must not disrupt the existing system, or in any way disturb the profiters of this corruption in the form of investors. Yes, we need more intrusion, laws, regulations, lobbyists, politicians in our pockets and judges who will rule where the money is as well as added costs and taxes. We must support this fine opportunist, survival of the fittest system, which has created personal bankruptcy and allowed the banks to continue to gouge the public as much as they are legally allowed, which is as much as they please. Yes, Bribes work and Tesla should be concentrating on paying off and buying as many people as possible and not trying to reform a broken system of "Free" enterprise over the system of corporatism. What is wrong with this man? You don't buck the system, you surrender to it. It owns you! Wow... you have incapsulated all that is wrong Tas and needs to be corrected. Nice job Tas, unless your statement was irony in disguise....
    28 Mar 2014, 12:47 PM Reply Like
  • Tom Incorporated
    , contributor
    Comments (354) | Send Message
    Very well said videomagik
    28 Mar 2014, 12:58 PM Reply Like
  • Reel Ken
    , contributor
    Comments (6665) | Send Message
    Hi videomagik,


    the system exists only because the people allow it to exist. The real power is in the vote.


    I always find it amusing that people will complain about, say Congress being the worst ever, yet they will still vote in their man. It's never who we know, it's always the "other guy" at fault.


    Voters have re-elected politicians in jail, and even in some instances those that are dead.


    Politicians have learned the fine art of finding "hot button issues" (pro-gun, pro-life, etc) and the public will give them a free pass on everything else.


    I'm just saying that it's easy to blame the system, much harder to realize it's because the people are easily manipulated.
    28 Mar 2014, 01:35 PM Reply Like
  • TAS
    , contributor
    Comments (3983) | Send Message
    No. It is how business at high political levels is done. It is not irony. It is sad.
    29 Mar 2014, 10:26 AM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
    Tesla is going to win in the end. If a state bans its direct sales model, then Tesla just need to get the surrounding states to allow it. When Jersey starts losing tax dollars, they'll change their minds. Sure it's only a few hundred Model S now. Wait until they start selling 500k vehicles a year.
    28 Mar 2014, 02:40 PM Reply Like
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