Community

Share your automotive expertise

2 Write a Blog Post

Filed in: Internet/BDC

Tesla Vehicles Could Be On Sale In New Jersey As Soon As July 1st

By DSNews on Jun 6, 2014

A Bill before New Jersey lawmakers could allow Tesla to sell their electric cars in the Garden State. The NJ State Assembly Consumer Affairs Committee approved bill A3216 by a vote of 4-0. This piece of legislation requires further advancement in the legislature before it could go to the desk of Governor Chris Christie. This could happen as soon as July 1st, with the bill going into effect immediately. This bill would allow zero emissions vehicle manufactures to operate no more than 4 retail locations to sell directly to consumers in NJ. It also stipulates that the manufacturer operate at least one location for servicing those vehicles.

New Jersey is one of five states in the U.S. that currently bans the sale of Tesla vehicles, and their direct-to-consumer model. This method that has caused concern for auto dealers, including one organization in that state that wants to see Tesla adopt the dealership model. Jim Appleton who is the President of the New Jersey Coalition of Automotive Retailers spoke out on this issue. He said that, “NJCAR is committed to working with members of the Legislature who are exploring options that would allow a start-up electric car maker, like Tesla, a reasonable period of time to ramp up operations (or sales volume) before they conform their business operations to the franchise model.”

Here you have a dealer association wanting Tesla to adopt the franchise model, however Tesla’s founder, Elon Musk is not likely going to do that, ever. In March of this year, Musk spoke on the issue of the direct-to-consumer sales model before a group of shareholders and Tesla supporters and said that, according to polling, “the percent of people in favor of allowing Tesla to do direct sales varies from a low of 86% to ninety-nine. In the case of the 86% there was a concerted effort on the part of the auto dealers to get everyone they could to vote against it.” Musk doesn’t want the dealership model. If this bill for zero emissions car manufacturers passes, it will be a large victory for Tesla and would represent a large pushback on their part towards their goal of using the direct sales model everywhere.

Will Elon Musk ever have a change of heart and take on the franchise model?

 

Comments

This is interesting. Thanks for sharing DS!

June 10th

Comments 1 - 1 of 1

You must be logged in to comment

Login Create an account

Add your comments:

   

DSNews' Recent Posts

Related Posts

  • Spark Additional Revenue with Reputation Management

    It’s no secret that auto buyers are turning to online resources before making an in-store purchase. Today’s buyers are more informed and ready to purchase when they walk into their dealership of choice. This is because these internet-savvy shoppers are researching their favorite model, including options and availability, examining local dealerships to see who carries the model of their choice, and visiting review and social sites to gather other consumers’ opinions to solidify their decisions. Once this extensive research is complete, then buyers go to the dealership to test drive the vehicle. Sound about right? With these types of buying patterns, it is more important than ever for your dealership to make a good first impression. But, how do you make a good first impression on the internet? Believe it or not, there are plenty of ways to accomplish this, but today we’re going to focus on upholding a positive online brand image through reputation management of online reviews. ...Read post

  • Is it time for an individualized CRM for Internet leads?

    After working with my dealer for 3 years now I have come across an issue that seems to rear its ugly head quite often... the problem is that my co-workers and managers alike just don’t seem to we willing to embrace the idea that customers are coming from the internet. Because of this we are always spending our entire marketing budget on print ads, "Beacuse thats whats working!" "I have set to see google bring me a deal."  I would like to get some input on my thoughts out-side of my dealer. It seems that we are now entering of not already head deep in the world of online. But the leads that come in via online sources are non-emotional. We have no way to gauge their interest beyond the words they surrender to us in their inquiries and I feel that it is unfair to simply place these leads as part of a dealers active CRM lowering the stats of a dealer. I feel that if possible Internet leads require a CRM outside of the current systems dealers have in place, as we still cannot con...Read post

  • 19 Tips & Tricks to Prepare for #DSES2014

    The DrivingSales Executive Summit 2014 is less than 80 days away, and Vegas can be an overwhelming experience if you aren’t prepared. After attending for the past several years, I wanted to share the best tips and tricks I have accumulated. Whether this is your first DSES or you are a Vogelheim Veteran, hopefully you can use this advice and benefit from my experiences.Read post

  • How To Sell 24 Cars Every Month Online By Appointment [Graphic]

    Car Dealers: Each of your BDC Reps or Internet Salespeople can produce 24 sales every month each, working by appointment, by following simple math!Read post

  • Content Marketing for the Innovative Dealership

    Dealerships are facing an uphill battle in the fight to reclaim search rankings from third-party listings, as well as the attempt to win customers through social media. For both automotive SEO and social media marketing, however, content is the single most important factor for overall success. You can optimize your dealership’s site to compete for certain keywords, but that’s only going to get you so far with Google. In order to truly impact rankings, you need to acquire links to your site. The absolute best way to do that is to produce content worth linking to in the first place. That is the essence of content marketing. What is Content Marketing? Content marketing is the art of creating high-quality content for the purpose of building awareness about a product, service, brand, or company. This is typically accomplished without employing sales tactics or openly pushing an agenda, unlike other forms of advertisement. The idea is to create content that your target audience ...Read post

  • Your Dealership's Staff Wants a Culture of Appreciation

    A dealership is often a high-stress environment, and if you don’t have a viable plan to show your employees that you appreciate them, you’re going to have to hire and re-hire over and over and over again…ad infinitum. So how do you typically show your employees that you appreciate them for their work? The money. You give your team monetary incentives in return for their excellent skills, which helps them feed their families while creating success for your store. However, some employees are motivated by something other than monetary gain. Some employees, no matter how much you pay them, are really looking for you to show your appreciation through your culture and other resources.   Let’s put this in perspective. Your employees spend 8 hours (often more) of their life each day at your dealership. That’s one-third of their existence. They are taking time away from their immediate families to be with you and work for you. And if you want them to continue to spend their pre...Read post

  • User Experience Guru and Online Marketing Pioneer, Bryan Eisenberg, is Keynoting #DSES This Year!

    Dealers, managers and marketers will discover how to reconcile the creative process to data analysis; aligning metrics with previously hard-to-measure marketing, sales, and customer service processes to deliver quick and tangible results to boost your bottom line. Read post

  • (Video) Two Tech Startups Want To Cut Dealers Out Of the Used Car Business

    They want dealerships to become a thing of the past. Their goal is to move the consumer car buying experience into a different realm. For these groups, the days of walking onto the used car lot will be replaced with one that starts in the customer's driveway. Read post