A Third Defeat for Tesla After the New Jersey Ban

Published: Mar 14, 2014

Captain Kimo / Foter / CC BY-NC-ND

Tesla has been known for its disputes with auto dealers in different states, because of its wish to sell cars directly to consumers. The carmaker’s latest dispute was in the state of New Jersey and it didn’t end well for Tesla.

The New Jersey Motor Vehicle Commission banned Tesla from selling cars directly from its two NJ stores, so the electric vehicle maker must sell through an auto franchise if they want to stay in business. This makes New Jersey the third state to issue such a ban, following Arizona and Texas.

Tesla’s reaction was that “the administration was undermining its model of selling cars”. The counter argument is that Tesla was already aware of state legislation that prohibits carmakers from selling cars directly to the public.

Tesla believes selling its cars directly is “not just a matter of selling more cars”, but about raising awareness about the importance of buying electric vehicles.

Read the full article in Reuters.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.