Tesla bids to overturn New Jersey commission’s March 11 ruling

Article by Christian A., on April 4, 2014

Tesla Motors Inc. has filed an appeal in New Jersey Superior Court to overturn the New Jersey Motor Vehicle Commission’s March 11 ruling barring it from directly selling its electric cars to consumers. The 11 ruling means Tesla’s two New Jersey stores will have to end sales effective April 15. The New Jersey Coalition of Automotive Retailers backs the commission’s position.

The appeal comes as Tesla chief executive Elon Musk remains adamant in implement his direct sales model that challenges state laws safeguarding franchised dealers. While these state laws generally bar factory-owned stores, some states opted to settle for compromise agreements that allows Tesla to sell directly to customer, albeit from a limited number of stores.

 In a statement, Tesla claimed that New Jersey’s ban on its sales model is not legally permissible and that it directly harms that state’s consumers. It said that that New Jersey law preventing carmakers from exploiting their greater market power to compete unfairly against dealership franchises does not apply to Tesla because it has no dealership franchises.

Tesla said in court documents for dealers to effectively ban its direct sales model, they need to “enthusiastically tout the reasons why electric vehicles are superior to gasoline vehicles.”

In response to Tesla’s appeal, Jim Appleton, president of the New Jersey Coalition of Automotive Retailers, said in a statement that they confident that Tesla’s legal challenge of the NJMVC rules will fail. Dealers against Tesla’s direct-sales model claim that the EV maker in some cases is violating state laws promoting price competition and protecting consumers.

Topics: tesla

If you liked the article, share on:

Comments

Recommended

A lot of gearheads we know enjoy tweaking their cars to make them look and perform like the dream car they cannot afford. There is nothing wrong with that though....
by - September 25, 2017
Potential customers in Hamburg, Germany who want to a good look at one of Bugatti’s prized offerings could now do so at the French super sports car brand’s latest showroom...
by - September 25, 2017
According to Japanese website Car Sensor, Mazda recently claimed that they might borrow a platform from Toyota, which they will use for the next generation Mazda6, so this can be...
by - September 25, 2017
The Infiniti QX50 compact crossover has been in the market since 2014, and has not been given a facelift since then. After being in the market for almost four years,...
by - September 25, 2017
It has been two years since Fiat Chrysler Automobiles started courting suitors for a potential buyout. Naturally, two Chinese automakers namely Guangzhou Automobile Group and Great Wall Motor Company have...
by - September 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries