- 8,443
- 2,143
- Joined
- May 4, 2011
What is this nonsense?
http://www.carverse.com/news/new-jersey-bans-tesla-for-being-too-consumer-focused-/
http://www.carverse.com/news/new-jersey-bans-tesla-for-being-too-consumer-focused-/
New Jersey Bans Tesla for Being Too Consumer Focused
Tuesday, March 11th, 2014
Car shopping was once a very lucrative process, with consumers constantly battling with the profit maximizing nature of car salesmen. Over the course of the last decade, technology has enabled customers to make more informative decisions and negotiations when it comes to a efficient and fair price point. Tesla has taken this notion of a bottom line pricing one step further as they eliminate dealer “networks” out of the equation for their cars, minimizing the price inflation over the cost of production, which in turn creates a much more feasible price point for consumers. While consumers are benefitting greatly from this, seeing as the car already runs a pretty hefty price tag as is, many state legislators have attempted to ban the direct nature of Tesla dealerships, stating that cars must be sold through a distributor, as seen in the latest case in New Jersey.
After a hearing earlier on this week, New Jersey is amongst the first of many states that have created a clause requiring car dealerships to not only participate in a distributor network, but also they must be at a minimum of 1,000 square feet in size and also have an on-site service center. As Teslas require much less physical maintenance than the average gasoline powered car, many of the brand’s dealerships are situated in strip malls which align more closely with a boutique than an actual car dealership. Tesla’s unconventional delearships have proven to be successful for the brand though, seeing as many of the problems in the car are actually software based, meaning that they can, and often are fixed remotely, negating the need for a physical repair center at every single Tesla dealership.
Tesla, as a brand, has shown the world that electric and efficient cars can be sexy. Their great strides in engineering technologically advanced cars have paved the way for development of the next thing that will hopefully set out to replace the gasoline engine, which is the center of pollution and subject to high gas prices; two things that are seen as promising to both the economy and the overall health of our communities.
As Tesla has conquered so much in the field of innovation, it seems quite strange as to why these states are fighting extremely hard to put red tape on the brand’s expanding nature. As of right now, Tesla sales are currently banned in Arizona, Colorado, Virginia and Texas, with dealers still unsuccessfully fighting for the ban of electric car sales in many other states. With the impressive sales numbers that Tesla has boasted, we can only hope to see that these states will come to their senses and allow the innovative company back onto their roads as the industry makes a general shift towards electric. Let us know down below what you guys think of this controversy behind ban of the beloved electric brand.