Should Tesla be able to sell cars directly to buyers?
Telsa's direct-to-buyers sales approach has been restricted in many states, but New Jersey senators could help ease the company's woes with a new bill.
In New Jersey, the trouble for Tesla stems from regulations requiring all new vehicle sales to be completed through a franchise dealership, which prevents the electric car producer from practicing its sales model. Supporters of the regulations say the law ensures price competition and "protects buyers from safety issues and recalls."
A new bill introduced by Assemblyman Timothy Eustace (D., Bergen), however, would permit makers of "zero emissions vehicles" to open four outlets and a retail service center in the state, enabling Tesla to utilize their three existing showrooms here.
While the bill was unanimously approved by the state senate, The New Jersey Coalition of Automotive Retailers is among those opposing the bill and Tesla's business approach. According to the group, the bill would eliminate marketplace competition and allow a vertical monopoly. Meanwhile, those in favor of the bill cite job opportunities and economic growth as benefits to the proposed deregulation.
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