The state Assembly passed a bill that will allow Tesla to sell its electric cars directly to consumers in New Jersey. The bill even allows Tesla to open two additional showrooms if and when Tesla chooses to expand.
However, the fate of the bill is currently unknown since the Senate will have to give it the final passing grade.
After the vote, there was no debate as all 77 members voted in favor of Tesla, with only 1 member failing to show. The bill is designed to allow Tesla or any other electric car manufacturers to sell vehicles directly to consumers without having to go through traditional car dealers. The bill also states that manufacturers have the option to open up to 4 showrooms, one of which should be a vehicle service station.
"This legislation will incentivize entrepreneurship, create jobs, promote environmental protection and address the important concerns of consumers in our state," said Timothy J. Eustace, D-Paramus, a sponsor of the bill.
Back in April of this year, the New Jersey Motor Vehicle Commission effectively banned Tesla from opening showrooms in the state. The MVC required Tesla to provide a franchise agreement; however, this is something Tesla doesn't have since the company sells its wares directly to consumers.
Tesla currently has showrooms opened in Paramus, at the Garden State Plaza and Short Hills. These showrooms are limited to what consumers can do, as they now only have the option to view the cars, but not to purchase them. If consumers living in New Jersey want to purchase a Tesla car, they will have to do it in a state that supports Tesla's business model, or go online.
These rules took effect on April 15.
Of course, the New Jersey Coalition of Automotive Retailers does not support this bill, and would rather - if Tesla had limited time to make direct sales - sell its wares through traditional dealership.
"No one wants to see Tesla out-of-business in New Jersey. Still, we're not certain that A3216 is an ideal solution for New Jersey's economy, the State's consumers or Tesla's long-term prospects for success," says the group's president, Jim Appleton.
With the bill needing to move through the Senate before reaching the Governor's desk, and the New Jersey Coalition of Automotive Retailers up in arms, it is clear that Tesla and other electric vehicle manufacturers are going to have a difficult time selling directly to consumers.
