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

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!

Jun 10, 2014

Comments 1 - 1 of 1

You must be logged in to comment

Login Create an account

Add your comments:

   

DrivingSales News' Recent Posts

Related Posts

  • Build a Marketing Plan Around Funneling Car Shoppers to Your Website

    Targeting is the name of the game. Most dealers (and even some vendors) are really starting to embrace this concept. Gone are the days of illogically spent marketing budgets and shotgun techniques... ...at least we wish those days were gone. Unfortunately, they're not. Many vendors still promote bulk marketing practices and many dealers are still buying into it. Producing favorable numbers is easy. Taking qualified buyers and getting them to engage in a meaningful way with your dealership is harder, but there's a silver lining: you have tools available to you to target the right people and get them to the right venues. The Right Venue First and foremost, the best venue for producing more sales is your website. That's not to say that there's anything wrong with AutoTrader, Cars.com, or any of the other places where your inventory can be seen. However, any opportunity you have to take them to your website will yield more favorable results. Between social media advertising, search e...Read post

  • Gamification: the Power and the Opportunity

    Gamification is an interesting topic and one that has gained momentum in many business categories, including automotive. The reason for this level of interest in this area of automated marketing solutions is simple; there are connections between how habits are formed from a neuroscience perspective to how gamification works in driving customer engagement and behavior change. Now, gaming can be hard-core and even competitive or it can be purely casual and done just for fun and entertainment. Either is fine depending on your goals, but gamification in a Dealership environment is not about fun or even engagement, it’s about driving tangible business results. Most Dealerships that currently use gamificiation are using it primarily as a sales strategy to motivate their sales teams. Having people compete on targets to win a bonus or other prize. The reality is that gamification in a dealership environment should compliment their marketing strategy and build on the existing promotions that...Read post

  • Gubagoo Selected as Certified Provider for Dealer.com

      West Palm Beach, FL– January 27, 2015 – Gubagoo, the fastest growing chat and website engagement provider for dealerships, today announced that it has been selected as a trusted provider in Dealer.com’s Certified Provider Program.  To qualify as a provider in the program, companies and their products must have proven value, security, efficiency, and return on investment, giving customers added assurance that they are choosing high-quality, complementary software and services. Gubagoo’s ChatSmart is powered by an intelligent platform that identifies website visitors and proactively engages them with relevant, targeted information. “Gubagoo is a chat solution that proactively engages with site visitors rather than simply interrupting and talking at them. A recent study showed that ChatSmart consistently delivers a 77% chat-to-lead conversion rate,” said Brad Title, CEO of Gubagoo Inc. “We’re thrilled to be selected as a Dealer.com Certified Provider and look forwar...Read post

  • Your Brand & The ONLINE Customer Life Cycle

    In today's crazy world of technology, consumers have an entirely new way about how they shop. Over the years I have been studying the online lifecycle regarding in-market shoppers, here are my thoughts and conclusions. Read post

  • The dealership sales and finance process has been built by dealers for dealers. Not consumers.

    There’s got to be a better way to sell a car. Everyone seems to think so.  In our recent dealer survey, 8 in 10 dealers agreed the time it takes to buy a car ought to take two hours or less but most say the average transaction time today is 3-4 hours from meet & greet to funded. The clear majority of these same dealers say that the biggest opportunity for change is to capture more information from the customer earlier in the process.   With the endless eCommerce sites available today, empowered ‘electronic’ shoppers have come to expect the transparency and immediate gratification made possible by the internet. It’s difficult for them to understand why buying a car still has to take so long. Most car shoppers today want to know what their payment terms will be while deciding on a vehicle, so it's completely illogical that dealerships make it virtually impossible for car shoppers to find financing information online.    Dealers should want to provide an easy, seamless...Read post

  • Why “Transparency” is Just Like Hard-Core Porn

    Writing a decision in a 1964 Supreme Court pornography case, Justice Potter Stewart wrote that some things are hard to put into words, hard to accurately define – and this is especially true of abstract ideas. So Stewart wrote one of the most famous phrases in court history “…I know it when I see it”. It’s interesting to note, that Stewart went on to say that the film question was not hard-core pornography. I think it is often easier to define what an abstract idea is not, than what it is.Read post

  • Make a Resolution to Provide Vehicle Education

    At OneCommand, we pride ourselves on developing new, creative ways for our clients to reach out, connect, and attract business. Several years ago, we developed a great way for our clients to accomplish this - providing vehicle education. Now I know what you’re thinking, “How will educating consumers about their vehicle bring more business to my store?” Check out these great tips to make a resolution to provide vehicle education. Be Relevant When providing vehicle education tips, be sure the content is relevant to your customers. Think about applicable services needed for a given season or time of year and be sure the information is pertinent to their specific model of vehicle. The more relevant you make your communication to the recipient, the more likely you’ll get your desired response. Include DIY Now this tip may seem like a complete oxymoron. The truth is, some services that need to be done on a vehicle a consumer can do without ever bringing it to a shop. However, an ev...Read post

  • Creating an All-Inclusive Dealership Experience

    Customer experience doesn't limit you to being compared to other dealerships; it compares you to every experience a customer has. You aren't just competing with the dealer down the road; you are competing with the coffee shop, grocery store, doctor’s office, and all-inclusive resort. Every industry is stepping up their customer experience game, and we especially in the automotive industry must do the same. Imagine if you could buy a vehicle while vacationing at an all-inclusive resort. What would that experience be like? Imagine that scenario, and then compare it to the process in your store; does it stand up? Read post