Christie Puts Blame on N.J. Lawmakers for Tesla Sales Ban
By Elise Young. In this report, we discuss a recent development in which Christie blames lawmakers for ongoing issues.
Governor Chris Christie said New Jersey lawmakers were to blame for a law that bars Tesla Motors Inc. (TSLA) from selling its electric cars directly to consumers.
New Jersey’s eight-member Motor Vehicle Commission, made up of members of Christie’s cabinet and others appointed by the Republican governor, voted unanimously March 11 to block Tesla from direct sales.
The Palo Alto, California-based automaker is battling car dealers state by state who want sales to go through them. Dealers in Ohio, New York, Minnesota, Georgia and elsewhere have argued that independent retailers are better for shoppers and vehicle owners. Texas dealers successfully backed a law setting the nation’s toughest restrictions on Tesla. Arizona, Colorado and Virginia also imposed limits.
Blames versus Solves
Christie, 51, who encourages businesses to move to New Jersey to help revive its economy, said he didn’t push Tesla out. Instead, he said, “The state legislature did” by prohibiting Tesla’s business model.
“Tesla was operating outside the law,” Christie said yesterday at a town hall meeting in South River. “I have no problem with Tesla selling directly to customers, except it’s against the law in New Jersey.”
Conclusion: Tesla Sales Fight Was Bigger Than Tesla
The New Jersey fight over Tesla (NASDAQ: TSLA) was about more than one automaker. It raised a much larger question about competition, consumer choice, and the future of electric vehicle sales.
In 2014, Governor Chris Christie argued that his administration was simply enforcing existing New Jersey law. He said lawmakers needed to change the law before Tesla could sell directly to consumers. Meanwhile, Tesla argued that forcing the company into the traditional franchise system protected an established business model rather than consumers. (The Green Living Guy)
However, the consequences extended beyond a political fight. The Federal Trade Commission later argued that New Jersey’s restrictions could impose additional costs and inconvenience on Tesla buyers while reducing competition in the automotive marketplace. (Federal Trade Commission)
More importantly, the controversy showed how quickly new technology can collide with old regulations. Tesla wasn’t simply introducing another electric car. Instead, it was challenging how Americans researched, ordered, bought, and serviced vehicles.
Ultimately, New Jersey lawmakers did act. In 2015, the state changed its rules to permit qualifying zero-emission vehicle manufacturers to sell directly to consumers. Therefore, the 2014 confrontation became another chapter in the larger transformation of the auto industry. (Texas Tech Law Review)
The lesson still matters today. Clean transportation innovation requires more than better batteries and longer driving ranges. It also requires policies that allow new ideas, new companies, and new business models to compete.
