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Why dealerships should embrace Tesla's direct sales competition

National and regional dealership associations have it in for Tesla Motors. For the past few years the organizations have been pushing lawmakers – to whom, it bears mentioning, they have made generous financial contributions – for legislation that would make it difficult for the Californian automaker to continue with its direct-to-consumer, company-store sales model. This is, of course, in addition to laws already on the books which make it illegal for manufacturers engaged with existing independent dealership networks to operate their own retail locations. As you may have heard, the dealers have recently had success in New Jersey and, previously, in Texas. Arizona passed a law in 2000 that forbids manufacturers from obtaining a dealer's license, completing the triad of states which now restrict sales from Tesla stores. Meanwhile, the company has had some amount of success pushing back against these efforts in Massachusetts, Ohio, New York and North Carolina. It is a constant battle, though, even in most of those locales. Direct sales are key to Tesla's success. Direct sales are key to Tesla's success. It's a big part of how the company managed to move from a simple start up to something of an American automotive phenomenon. While CEO Elon Musk likes to say that it uses this method because selling an electric car would somehow be a conflict of interest for dealerships that also sell conventionally- powered vehicles, there is really a lot more to it than that, and it's wrapped around the customer experience. You can sit at home in your pajamas and configure exactly which color and options you want for your Model S over the Internet, send an electronic payment and have that exact car arrive at your door some weeks later. The company stores are an outgrowth of that concept, but allow you to see physical samples of the colors and materials involved, take a test drive and interface with a friendly human who can immediately answer any questions you might have, as well as facilitate financial transactions. You still get the exact car that you order. Having company-owned stores lets Tesla keep complete control of its entire retail network and therefore, the buying experience. Staff aren't paid by commission and are encouraged to be truly customer-focused.

New Jersey will let Tesla continue selling EVs until April 15

Tesla sales in New Jersey were supposed to end today, following the state legislature vote a few weeks ago to pull Tesla's sales license there. At the eleventh hour, though, Gov. Chris Christie's administration has extended the deadline to April 15. The specifics of the situation are that the New Jersey Motor Vehicle Commission (MVC) is going to give new car dealers until the middle of the month to submit their franchise agreement (which, of course, Tesla stores don't have). That means, for now, it's business as usual The two-week extension could keep Tesla alive in the Garden State. While it's only a two-week extension, it could be enough to keep the California automaker alive in the Garden State. This is because state assemblyman Tim Eustace (a Democrat and EV driver) submitted a bill the other day that would allow Tesla to sell cars directly to customers in New Jersey. One interesting component of Eustace's bill is that it only applies to zero-emission vehicles as long as they make up less than four percent of all the new cars sold in the state. Eustace told NJ.com that this bill might be fast-tracked into law because it has leadership support. Jim Appleton, the president of the New Jersey Coalition of Automotive Retailer (the force behind the anti-Tesla movement), said, "to the extent that there is legislation that would allow an all-zero emission vehicle automaker to enter the market for a period of time without franchises, before they eventually convert to a franchise system, it makes sense." You can read the proposed bill here. The MVC gave Tesla a license to sell cars in 2012 and Tesla now operates two stores in New Jersey, one in the Garden State Plaza in Paramus and the other in Short Hills.

And now for a different sort of Tesla Model S review...

Our friends at Kelley Blue Book have taken an unflinching look at the Tesla Model S in a new video. The crew originally planned to pack up and whip the electric sedan all the way to Las Vegas from Los Angeles, but got sidelined by a flat tire. The ensuing detour to a Tesla service center resulted in a day of hopping from charge point to charge point and a number of close calls on the range front. Confronted with cold temperatures, a desire to make time and some serious topography, the Model S pulled up short on projected range but never left the guys stranded.
The team eventually makes it to Vegas and discovers the aggravation of trying to charge the car with anything other than the company's supercharger stations. The return trip goes quite a bit better, however, and KBB starts to figure out what makes the Model S so special. We won't ruin the end for you. You can check out the full clip below.