Tesla Motors has had a tough struggle with their company business model selling vehicles directly to the customers. The reason for the struggle is because dealerships are crying foul and saying that Tesla selling cars directly to customers without using dealerships and unfair. There are states that have upheld the law or made a new law banning direct sales of car manufacturer to customers.
Auto Transport Quote Services would like to report that in New Jersey, governor Chris Christie signed new legislation into law a bill that allows Tesla, and other future companies like Tesla, to sell its cars directly to consumers without a dealer. Chris Christie has said in the past that if presented with a bill like this that he would sign it and make it into law and that is exactly what he did when the opportunity was presented to him. Th law states that it allows zero-emissions vehicle manufacturers to sell its cars directly to consumers without dealers at up to four licensed locations within New Jersey limits. Currently New Jersey has three Tesla “galleries” where customers can “learn” about the Tesla Model S and future Tesla Model X.
It has really been an uphill battle against Tesla. Old Franchise laws in each state prohibit automakers from selling directly to consumers, and must have dealers to act as middlemen to hold inventory, provide finance options, market within their given region and service vehicles. Tesla must take this direct selling policy to each state. To get around this Tesla has been opening “galleries” that showcase the Tesla Model S and gives information about the vehicle. If the customer would like to purchase, they are directed to go home and buy it online. Now, in New Jersey, they can take the order right at the gallery.
This New Jersey win for Tesla is the start they need for other states to follow. Only time will tell if Tesla will be on the upside or not with its direct sale business model.