Tesla CEO fights back in New Jersey# Stock
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http://money.cnn.com/2014/03/14/autos/elon-musk-tesla-new-jerse
iid=Lead
Elon Musk is sending new customers from New Jersey to New York or Pennsylvan
ia.
The Tesla CEO lashed out at New Jersey -- and particularly Gov. Chris Christ
ie -- in a company blog post Friday, three days after a state agency agreed
to ban the electric car company from selling vehicles directly to customers
in the Garden State.
"The rationale given for the regulation change that requires auto companies
to sell through dealers is that it ensures 'consumer protection,' Musk wrote
. "If you believe this, Gov. Christie has a bridge closure he wants to sell
you" -- referring to the closure of the George Washington Bridge last Septem
ber, allegedly instigated for political reasons by aides to Christie.
Musk wants to sell the cars at Tesla stores instead of going through a franc
hised car dealership, and has been doing so at two locations in New Jersey f
or about a year. But a vote by the state's motor vehicle commission on Tuesd
ay makes that illegal, effective April 1.
After that date, Musk encourages New Jersey residents to visit Tesla stores
in Manhattan or in King of Prussia, Pa., or to buy a Tesla car online and ha
ve it delivered. The New Jersey stores will become galleries where people ca
n view Tesla's Model S and ask questions about the car, but not purchase the
vehicle. Its service centers will not be affected.
Related: NJ agrees to ban Tesla's direct sales
Musk claims that the auto dealer lobby "cut a backroom deal with the governo
r to circumvent the legislative process."
But Jim Appleton, the president of the New Jersey Coalition of Automotive Re
tailers, also known as NJ Car, say there was no backroom deal. In fact, the
vote taken by the motor vehicle commission "simply conforms their regulation
s with existing state law."
The governor's office Friday stood by what it has been saying all along, tha
t if the law is to be changed, it should be done so through the legislature.
Tesla tops Consumer Reports' picks
Tesla tops Consumer Reports' picks
"This administration does not find it appropriate to unilaterally change the
way cars are sold in New Jersey without legislation and Tesla has been awar
e of this position since the beginning," said spokesman Kevin Roberts.
Advocates of the law say it aims to encourage price competition and ensure c
ustomers have access to warranty and recall services.
But Musk fears dealers will promote gasoline cars before Tesla's electric on
es.
He encouraged New Jersey residents to write to their state senators and asse
mblymen if they believe Tesla should be able to continue selling its cars di
rectly to consumers in the state. His blog post also indicated that Tesla mi
ght take the battle to court. To top of page
iid=Lead
Elon Musk is sending new customers from New Jersey to New York or Pennsylvan
ia.
The Tesla CEO lashed out at New Jersey -- and particularly Gov. Chris Christ
ie -- in a company blog post Friday, three days after a state agency agreed
to ban the electric car company from selling vehicles directly to customers
in the Garden State.
"The rationale given for the regulation change that requires auto companies
to sell through dealers is that it ensures 'consumer protection,' Musk wrote
. "If you believe this, Gov. Christie has a bridge closure he wants to sell
you" -- referring to the closure of the George Washington Bridge last Septem
ber, allegedly instigated for political reasons by aides to Christie.
Musk wants to sell the cars at Tesla stores instead of going through a franc
hised car dealership, and has been doing so at two locations in New Jersey f
or about a year. But a vote by the state's motor vehicle commission on Tuesd
ay makes that illegal, effective April 1.
After that date, Musk encourages New Jersey residents to visit Tesla stores
in Manhattan or in King of Prussia, Pa., or to buy a Tesla car online and ha
ve it delivered. The New Jersey stores will become galleries where people ca
n view Tesla's Model S and ask questions about the car, but not purchase the
vehicle. Its service centers will not be affected.
Related: NJ agrees to ban Tesla's direct sales
Musk claims that the auto dealer lobby "cut a backroom deal with the governo
r to circumvent the legislative process."
But Jim Appleton, the president of the New Jersey Coalition of Automotive Re
tailers, also known as NJ Car, say there was no backroom deal. In fact, the
vote taken by the motor vehicle commission "simply conforms their regulation
s with existing state law."
The governor's office Friday stood by what it has been saying all along, tha
t if the law is to be changed, it should be done so through the legislature.
Tesla tops Consumer Reports' picks
Tesla tops Consumer Reports' picks
"This administration does not find it appropriate to unilaterally change the
way cars are sold in New Jersey without legislation and Tesla has been awar
e of this position since the beginning," said spokesman Kevin Roberts.
Advocates of the law say it aims to encourage price competition and ensure c
ustomers have access to warranty and recall services.
But Musk fears dealers will promote gasoline cars before Tesla's electric on
es.
He encouraged New Jersey residents to write to their state senators and asse
mblymen if they believe Tesla should be able to continue selling its cars di
rectly to consumers in the state. His blog post also indicated that Tesla mi
ght take the battle to court. To top of page