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 DrivingSales News 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:

   

DrivingSales News' Recent Posts

Related Posts

  • Conquesting 2.0: Attract Cross-Shoppers With Search Remarketing to Capture More Sales

    Once a qualified buyer browses your website and leaves to check out your competition, what tactics do you have in place to bring her back to choose your model? My most successful dealers have addressed this opportunity by combining two tactics that have been proven to drive increases in return website visits by cross-shoppers using mobile devices and PCs. Put simply, we’re running search ads in a new way that’s actually getting a response to help our dealers meet their sales goals consistently. Read post

  • Mobile Click-to-Call vs. Tap-to-Text: Controversial or Complementary?

    A July 2014 Automotive News article sang the praises of phone calls over email and form leads, citing faster responses and ease of use via mobile. What it didn't point out, though, is that text-based, one-to-one messaging is worthy of a verse or two as well.Read post

  • Do Your Salespeople Spend Too Much Time Managing Software...Instead of Selling?

    The fact is, lead generation is an expensive business and having the right tools to manage this investment and deliver the most qualified leads to your dealership is paramount to your success. When it comes to mining your database and working your in-market customers, you have two choices: use your internal team to run and manage all aspects of it (self-service) or outsource many of the functions to a service provider who does most of the heavy lifting (full service).  Self-service options demand the installation of comprehensive software that requires training and hands-on daily interaction to be effective, while a full service provider will take over the day-to-day tasks (i.e., database management, developing marketing materials, mailings, e-mails, etc.) and, instead, deliver qualified leads to your sales force. Both approaches have their pros and cons. Full disclosure, I currently work for a full service provider, but I also spent eight years as VP of Sales and Marketing for a la...Read post

  • "Going Viral" is a Dream, Not a Goal

    Over the years, I've worked with some of the best social media marketers in our industry. I've seen some posts that have hit incredible numbers on social media sites that were seen by tens, even hundreds of thousands of people. They were all memorable, not because the content was so incredibly awesome but because "going viral" on the internet is so hard. In fact, it's not just hard. It's what most would consider to be a fluke. It's for this reason that I want to warn dealers about the concept of going viral. Reference.com says that going viral is something "pertaining to or involving the spreading of information and opinions about a product or service from person to person, especially on the Internet or in e-mails." It sounds awesome! Wouldn't every dealer love for their messages on their website, blog, YouTube channel, or social media profiles to go viral and get spread from person to person in bulk? Unfortunately, it's not something that can be easily manufactured. I'm not going...Read post

  • Dealer Solutions: Catching Red Flags on Millennial Resumes

    Does it ever feel like the term “millennials” is an annoying buzzword or something that the American workforce can’t stop mentioning? Regardless of how this may make you feel, this is a term that won’t be going away anytime soon. You probably keep hearing something about “Generation Y is the future” or “right now is the time to attract millennials at your organization”—although it might seem repetitive, it’s true. This generation currently makes up approximately 23% of the dealership workforce, according to a report released by the NADA last year. Additionally, the percentage of millennials in the workforce is only going to increase in the years to come. This also means that there’s a good chance you’ve had a decent influx of resumes coming from this specific generation at your dealership. While hiring millennials is essential to growing business, it’s also important to make sure you’re hiring the best-fit candidates. One way to avoid poor hiring decisions is by scanning resumes for certain warning signs. The following are several red flags on millennial resumes that hiring managers should search for in order to avoid hiring a potential turnover candidate at your dealership: Careless Grammar & Spelling—This is an obvious red flag to spot on any resume. If a potential candidate is lazy enough to not carefully proofread his or her resume, then it’s likely that same candidate will not perform to the best of his or her ability. Full Sentences—Resumes should never be writRead post

  • AutoLoop Welcomes Sales Rep Sean Donovan

    Clearwater, FL--October 21st, 2014--AutoLoop LLC, a leading developer of sales-generation and customer-retention software for auto dealers, today announced the addition of Sean Donovan as Sales Representative for western North America. Donovan brings nearly 20 years of automotive marketing, technology, and analytics experience to the team, and his new position emphasizes AutoLoop’s continued expansion into the western U.S. market.   “Sean’s an exciting addition,” said John Bottone, AutoLoop’s Vice President of National Sales. “He has a deep understanding of our products and the ways dealers can benefit from them. Having him on the team will be a tremendous asset to our ongoing success in the west coast markets.”   Before joining AutoLoop, Donovan served at dealerships throughout the western U.S., and has watched how the rise of mobile devices has affected the consumer purchasing process. “Today’s dealers must focus stronger efforts on engaging and retaining cust...Read post

  • 3 Halloween Ideas for Car Dealerships

    Trick or treat! There’s a little less than two weeks until Halloween! Does your dealership have a plan for how to bring more shoppers into the showroom and service bays during this fun and hopefully-not-too-scary time? You should! Holidays are always an opportune time to foster some community spirit and be the host to memorable events for your customers and prospects. If you’re struggling with coming up with ideas for how to celebrate Halloween while bringing in more sales, I’ve put together a few ideas below that are sure to get your community excited to come see you.   Throw a Community Halloween Party Everyone loves a party, right? Provide food, drinks, and music, have a costume contest with prizes, set up a haunted house, hayrides pulled by a truck (to show off the impressive strength of your vehicles) give out candy, and make sure everyone has a good time. Events like these build community bonds and even if the attendees don’t buy a car while they are there, theyRead post

  • DrivingSales Announces Innovation Cup and Dealer Best Idea Award Winners for 2014

     New Car IQ from Pearl Technology wins 2014 Innovation Cup Award and “YouTube Postal Service” from Robert Karbaum E-Commerce Manager, Weins Canada Inc./Don Valley North Lexus, wins the 2014 Dealer Best Idea Award; presented at 2014 DrivingSales Executive Summit     Salt Lake City, Utah – October 20, 2014 – DrivingSales today announced the winners of the 2014 DrivingSales Innovation Cup and Dealer Best Idea Awards. “New Car IQ” from Pearl Technology won The Innovation Cup Award for the most innovative dealership solution of the year. Robert Karbaum, E-Commerce Manager, Weins Canada Inc./Don Valley North Lexus took the Dealer Best Idea Award for “YouTube Postal Service.” This is the second year in a row Karbaum has won the award. The awards were presented in Las Vegas on October 14th at the sold-out DrivingSales Executive Summit (DSES). Over 1,000 dealers and industry professionals attended the three-day event, which concluded on Tuesday.   “It always gives me g...Read post