Tesla and NJ Auto Dealers Still in a Fierce Battle

Published: Mar 24, 2014

Тhe verbal battle between Tesla Motors and New Jersey auto dealers has never ceased ever since New Jersey passed a bill that prevents Tesla from selling vehicles directly from its stores.
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Elon Musk, CEO of Tesla Motors, thinks this policy is hurting EV sales. Furthermore, he says that auto dealers feel threatened that the sale of Теsla vehicles means less business for them, due to less problems that require a dealership visit, but rather a software update.

Auto dealers, however, do not agree. Peter Welch, president of the National Automobile Dealers Association (NADA) believes selling through dealership promotes competition, and therefore, drives prices lower. Moreover, auto dealers provide an extra layer of security, because: “automakers have an economic disincentive to issue recalls or incur warranty expenses.” Dealerships, on the other hand, have financial incentives to do “safety and warranty work”, which ultimately is for the good of the consumer.

The debate is heated, because Tesla is currently facing similar bans in Ohio and New York.

Read the full story at Associations Now.

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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.