As with any new business, gaining foothold in a market can be excruciating and difficult due to financial and legal obstacles, among other barriers of entry. Tesla Motors has managed well so far, but you may have read about the difficulties they have been having on the state level.
Due to their on-going legal battles with multiple states in the U.S. that require licenses to sell their acclaimed Model S, Tesla’s growth has been slightly shunted, and now another state from the union has joined the fray. The issue at hand is New Jersey’s denial of Tesla’s unique sales model, as it is different from the standard dealership set-up that is handled by most all other automakers in the U.S.
In a recent official blog post released by Tesla, the company stated, “Unfortunately, Monday we received news that Governor Christie‘s administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature. The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey. This new rule, if adopted, would curtail Tesla’s sales operations and jeopardize our existing retail licenses in the state … This is an affront to the very concept of a free market.”
Both parties met on March 11th to discuss the issues and options, as Tesla Motors was fairly disappointed with such actions. However, recent events possibly should not be a surprise since New Jersey had considered levying a tax against EV owners a few years ago, which was eventually shot down by legislators.