Tesla Files Appeal to Controversial New Jersey Sales Ban
After New Jersey’s legislature pressed ahead with a unanimous decision to ban sales of Tesla Motors’ (NASDAQ:TSLA) Model S sedan, the company wrote a couple of scathing blog posts calling the state out on its seemingly shady, back room-organized, and auto-dealer supported policy. In one of the posts, Tesla said it was considering its legal options, and earlier this week, the company delivered.
Tesla has formally appealed the state’s decision, saying that the new regulations contradict an existing franchise statute the state legislature approved that allows such direct sales, NJ.com reports. Tesla said the commission “had bowed to intense pressure from the state’s franchise auto dealers association, the New Jersey Coalition of Automotive Retailers,” or NJCAR, according to the site.
“Franchise dealers have an inherent conflict of interest in selling electric vehicles,” Tesla’s filing reads. “In order to do so effectively, they would need to enthusiastically tout the reasons why electric vehicles are superior to gasoline vehicles. This is not something that they are going to do since gasoline vehicles represent virtually all of their revenue.”
Naturally, James Appleton, who heads up NJCAR, disagrees, arguing that the other 13 car companies that sell electric vehicles do so through franchises, including in New Jersey. What he didn’t mention was that those other 13 companies sell numerous gasoline vehicles as well, according to NJ.com.