Though Tesla has been selling its wares at two New Jersey locations for approximately a year now, it turns out the company is going to have to shut its retail operations in the Garden State. Jeez, and with the state being known for that nickname, one would assume it would be open to an electric vehicle automaker.
According to dealership associations, Tesla's business model of skipping the middleman removes price competition in the market. Oh, and it's against New Jersey state law. That can't be debated.
Do I feel sorry for Tesla for starting up two retail stores without trying to change the law? No. Though Tesla claims it thought it was working with several parties in "good faith" that doesn't seem like good business because anyone knows that "good faith" isn't a reality when it comes to dollars and cents. I do think it's a bit slimy that Tesla was not provided with 24 hours notice of the meeting that went down yesterday.
It is a bit of a bummer to see its direct sales model get another bump on the noggin because, let's be honest, if franchised dealerships were so good to customers our sister site — DealerRater.com — wouldn't exist. One can argue dealers provide price competition, but they also rip people off everyday.
That said, we're a bit curious what YOUR take on this is: is Tesla getting screwed?
**Shopping for new wheels and looking for the BEST dealer to take care of you? Point your browser to AutoSpies' sister site, DealerRater.com, to get the treatment you deserve!
...Tesla's practice of selling its Model S electric sedan directly to consumers is unusual and has run into problems before. Chief Executive Officer Elon Musk has tangled with dealership associations in various states including Texas and New York.
The change agreed to by the New Jersey commission Tuesday, "simply conforms their regulation with state law," said Jim Appleton, the president of the New Jersey Coalition of Automotive Retailers, also known as NJ Car...
Read Article