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Tesla Is Shaking Things Up in New Jersey

NEW YORK (TheStreet) — Tesla Motors’ (TSLA_) appeal of a ruling in New Jersey that bans the car maker from selling its luxury electric vehicles directly to consumers in the state shows Tesla is intent on shaking up the car industry, potentially hurting sales of traditional gas-powered cars.

In a claim filed Wednesday, Tesla said that the ruling last month by New Jersey’s Motor Vehicle Commission was antiquated and anti-competitive. It claimed that states were bowing to the pressure of car dealers.

According to Tesla’s claim, if car dealers had to sell Tesla vehicles, then they would have to explain why electric cars are better than gas-powered cars, which would be a conflict of interest considering franchise car dealerships get most of their revenue from gas-powered vehicles.

James Appleton, president of New Jersey’s Coalition of Automotive Retailers, says that Tesla wants full control over the distribution of its cars, potentially eliminating all its competitors. He said that franchises promote competition, benefiting the consumer.


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