Our Garden State actually made Tesla Motors’s stock drop today…literally. The New Jersey Motor Vehicle Commission (@NJ_MVC) voted today (March 11, 2014) to ban the direct sale of Tesla’s vehicles in NJ. For now, Tesla will be forced to sell their vehicles through dealerships. NJ is sadly joining two other states on this banning, following TX and AZ (not to be confused with Texas Arizona, the bar in Hoboken).
Let’s discuss a few things here:
1) Possible ways that the NJ MVC could have come to this decision
– Did the current NJ dealerships lobby against Tesla entering the market here? It’s obvious that car companies (and oil companies) are starting to feel (if not already feeling) threatened by Tesla and the thought of cars not needing gas.
– Did the oil companies have a play in this decision?
– Does the NJ has a deep, deep desire to be grouped into a threesome with TX and AZ?
– Very not-so-bright people were put in charge to make this decision
– NJ would rather have its residents drive to CT, PA, DE and NY to buy Teslas
2) Reasons why this is a terrible decision
– NJ moves in the opposite direction of the US in terms of being more environmentally conscious
– NJ gets a bad reputation overall
– NJ shuts down the idea of entrepreneurship & innovation–the two characteristics that Elon Musk drove Tesla Motors toward success with
– NJ is giving sales taxes to CT, PA, DE and NY (when NJ’ers go there to buy their Teslas)
– Christie loses more points in his potential pre-presidential run
3) Potential Solutions/Reactions
– The feds jump in to reverse this decision (should the State really have a voice in this decision anyway?)
– Tesla fights (which I’m sure they’re already doing)
– NJ residents go out of state to buy Teslas
– People tweet/post on Facebook about how ridiculous the NJMVC is for making this decision
Please comment with your thoughts, questions and any other facts you can share. Also, we added a poll to our homepage to gather the resident’s view on this decision–vote away! More news on this can be found at CNBC and TechCrunch.