Tesla Motors’ direct sales model has repeatedly drawn fire from the ADAs (automobile dealership associations), which has led to prohibition in a number of states.
Tesla Motors can’t sell any cars in Texas, for example, and buyers have to jump through hoops to get one delivered to them, and that’s not the only state with issues. As of six months ago, only half of the continental United States were Tesla-Motors-friendly, including direct sales, supercharger availability, and service centers.
Almost exactly a year ago, we reported that New Jersey banned the Tesla Motors direct sales, and the company has been fighting that decision ever since. A few months later, there seemed to be a glimmer of hope to allow Tesla Stores to sell cars, but politics works very slowly without enough money to grease the joints.
This week, a new New Jersey law went into effect, allowing Tesla Motors direct sales in the state, on a couple of conditions. First, the company can only operate a maximum of four Tesla Stores in New Jersey. Second, Tesla must operate at least one service center. With three Tesla Supercharger stations in operation, and more on the way, and the new laws in effect, we bid New Jersey a warm welcome to the 21st Century.
Tesla Motors, in response to a @GovChristie Tweet regarding the new law, tweeted back: “A huge victory in New Jersey for concumer choice: We are open for business!” Interestingly, even the Federal Trade Commission says that direct sales is good for business, encouraging the states to do exactly what New Jersey just did, opening the way for increased compeitition and business opportunity.