Katie O'Brien
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Katie O'Brien in Senior Content Editor,

NJ Governor Reverses Ban on Tesla Sales

Luxury electric car brand Tesla (NASDAQ: TSLA) will now be able to directly sell their vehicles to customers in New Jersey, according to CNet. New Jersey Governor Chris Christie ended the bank Wednesday we he signed a law unrestricting the company from an almost yearlong ban in the state.

The ban was originally put it place when legislators fell to the demands of auto lobbyists, CNet reported.

Tesla CEO Elon Musk recently said he does not believe electric car makers should not be held to the same restrictions as traditional vehicles, including the mandatory use of dealerships, CNet reported.

"This [sales] model is not just a matter of selling more cars and providing optimum consumer choice for Americans, but it is also about educating consumers about the benefits of going electric," Musk said, according to CNet. Such education "is central to our mission to accelerate the shift to sustainable transportation, a new paradigm in automotive technology."

The luxury cars generally begin pricing around $70,000 CNet reported, and increasing from there. The company will be permitted to open four stores and one service center in the state.

CNet commenter GeneralStuff said:

Talk about a medieval law. If a manufacturer has a product they wants to sell they should be able to sell it direct to the consumer. Why should they have to sell it to a guy who then sells it to the consumer? It makes no sense. All it does is introduce a job that doesn't need to exist. Sure it might create a job - but if that's the road we want to go down then why not have a guy who walks down your street placing cheese in the road and another guy behind him who picks it up again?!

We need jobs but they have to have a purpose other than existing for the sake of it. As time progresses certain jobs will no longer be needed and new ones will take their place. If all we do is make laws to protect old jobs then we'd still have people making steam engines for railroads.

A free market means exactly that. Free.

CNetcommenter clnet reader responded:

I certainly agree. If a manufacturer doesn't want to deal directly with customers, they are free to allow dealers to resell the product. Why does the Government need to dictate whether a manufacturer sells directly or via dealers? That isn't a free market, but the all-too-common crony capitalism which enriches the special interests and the politicians involved. Would that we had citizen statesmen again rather than career politicians.