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Tesla Motors appeals sales ban in New Jersey

Resistance to the way Tesla Motors sells its cars - directly to the consumer, with no negotiating and no dealer middleman - comes mostly from dealership organizations around the country. It's also illegal in some states, thanks to laws ushered into place with help from dealers. The reaction to Tesla's new style of business is led by what Steve Blank calls, "rent seekers" or "landlords of the status-quo." Tesla itself isn't into that sort of name-calling, but it will take to the courts when necessary. Case in point, New Jersey, where the legislature voted in mid-March to stop Tesla stores from selling cars starting April 1. This week, the New Jersey Motor Vehicle Commission (MVC) extended a deadline until April 15, a move that could save the EV automaker's future in the state. Tesla has now filed with the state Superior Court asking that the ruling be appealed. Tesla says that the MVC is taking its orders from the state dealers association, the New Jersey Coalition of Automotive Retailers. Tesla also made an argument against the traditional gasoline vehicle dealers that we've heard before. Here is some of the text of the appeal: Franchise dealers have an inherent conflict of interest in selling electric vehicles. In order to do so effectively, they would need to enthusiastically tout the reasons why electric vehicles are superior to gasoline vehicles. This is not something that they are going to do since gasoline vehicles represent virtually all of their revenue. Dealers also depend on quick, high volume sales - incentivized by substantial sales commissions - in large, out-of-the-way facilities that contain large inventories of new and used cars. By contrast, Tesla sells its cars in relatively small showrooms, often located in shopping malls (like the two stores in New Jersey) that invite people unfamiliar with electric cars to drop in. You can read the full appeal in the PDF below. The TSLA stock price rose after the appeal was filed, but has since leveled out. Tesla vs. New Jersey Auto Dealers Superior Court Appeal by AutoblogGreen This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Tesla says Chris Christie's move is 'affront to the very concept of a free market'

Tesla has a special history with the state of New Jersey, having delivered the 500th Roadster there in 2009. Fast forward to 2014, though, and the electric vehicle company is having a decidedly less-positive experience in the Garden State. In short, Tesla's ongoing dealer fight has turned sour, and thing are potentially going from bad to worse today. Tesla says it has been working "constructively" with the New Jersey Motor Vehicle Commission (NJMVC) and Governor Chris Christie's administration "to defend against the New Jersey Coalition of Automotive Retailers' (NJ CAR) attacks on Tesla's business model and the rights of New Jersey consumers." In other words, the right for Tesla to open its own stores and not use the traditional dealer model. The legislative process on the fate of Proposal PRN 2013-138 (PDF) has been continuing and Tesla says it thought everyone was acting in good faith, but now it's not so sure. In a new official blog post, Tesla says: Unfortunately, Monday we received news that Governor Christie's administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature. The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey. This new rule, if adopted, would curtail Tesla's sales operations and jeopardize our existing retail licenses in the state. ... This is an affront to the very concept of a free market. A meeting on the proposal is scheduled to take place this afternoon, and Tesla is not happy about it. In Ohio last year, Tesla asked for immediate help to stop a similar bill, which ended up working. For a while. Last year, New Jersey started considering an EV-only tax that would cost EV drivers about $100 a year, but that appears to have been scrapped.

Tesla Model S Proves Troublesome For Consumer Reports

The Tesla Model S has turned into the breakthrough model that electric cars needed. Instead of looking like a futuristic jellybean whizzing by, the Tesla would still be incredibly attractive with a V8 stuffed under the hood. But beyond its appealing styling, the luxury sedan offers a realistic driving range, impressive performance and oft-praised driving dynamics. It's everything many drivers are looking for. However, as more long-term reviews come out, it's becoming clear that living with one of these wonder cars isn't without its fair share of problems. A few weeks ago, Edmunds published its 17-month ownership experience with a Model S. It praised the experience being behind the wheel of the luxury sedan, at least when it was possible. Edmunds reported that it had to make seven unscheduled trips to the service bay and even left a writer by the side of the road once. The biggest issues included replacing the drive unit three times, needing a new main battery and numerous resets of the center screen. Consumer Reports just wrote about its own driving impressions after 15,743 miles, and its experience with the Model S has hardly been a walk in the park, though not nearly as bad as Edmunds' rough time. The infotainment screen needed a hard reset once after blinking out, and one unscheduled service left the sedan in the shop for two days. There have been other, smaller issues too. In Tesla's favor, the repairs were done under warranty. Even with this latest report, we only have data regarding two Model S examples out of thousands, but a somewhat difficult picture is being painted about the breakthrough EV as we read more and more. Everyone loves driving it, but living with one might not be quite so joyous. Head over to Consumer Reports to read its full impressions.