Tesla CEO Rips New Jersey Over ‘Backroom Deal’ Auto Sales Ban
Tesla CEO Elon Musk is urging buyers to visit the company's locations in New York City and Philadelphia
Tesla CEO Elon Muskblasted New Jersey officials on Friday for moving to prevent consumers from buying vehicles directly from the electric car maker, charging that auto dealer lobbyists “cut a backroom deal” with Gov. Chris Christie “to circumvent the legislative process.” In response, the head of the state Coalition of Automotive Retailers accused Musk of throwing a “hissy fit.”
POPULAR AMONG SUBSCRIBERSEarlier this week, the New Jersey Motor Vehicle Commission, which is composed of political appointees selected by Gov. Christie, blocked Tesla’s ability to sell electric cars through its own retailers, as it does in New York and Pennsylvania. Tesla sells cars directly to customers through its own retail locations, whereas most car manufacturers rely on third party dealerships for sales.
As a result of the new rule, New Jersey residents will soon have to go out of state if they want to purchase a Tesla vehicle — and that’s exactly what Musk is now suggesting. In a blog post, Musk urged would-be Tesla buyers to visit the company’s New York City store or its King of Prussia, Pa. location near Philadelphia.
For decades, the major U.S. automakers have sold vehicles under the now-familiar dealership franchise model. As a result, the U.S. auto market is comprised of thousands of independently owned dealerships, which are granted the right to market and sell brands like Ford — much in the same way that fast-food restaurants like McDonald’s are independently-owned franchises
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