NJ made Tesla open 6 dealerships or they were not allowed to sell their cars there. Typical.

quote:

Originally posted by downtownv:
NJ made Tesla open 6 dealerships or they were not allowed to sell their cars there. Typical.

New Jersey’s 510 neighborhood new car and truck dealerships represent a $34.6 billion per year industry and directly employ or support more than 69,000 good-paying, local jobs that can’t be outsourced.

Franchised new car & truck dealerships directly provided or supported more than 69,000 jobs in 2020.
Franchised dealerships had total sales of more than $34.6 billion in 2020.
Average new vehicle dealership sales were $67.9 million in 2020.
Dealership employees earned $3.84 billion in 2020.
The average dealership payroll was $5.49 million in 2020.
Dealerships collected/paid nearly $1.73 billion in state and local taxes in 2020.

Link

Pretty sure the dealers in the state contribute lots of money in payroll and property taxes to the state, and letting Tesla go direct could accelerate a shift in vehicle marketing. Both NJ and the dealers have a large vested interest and investment in NJ. Why let a government funded car company not have to comply with state law.

If Tesla wants to sell direct they need the law changed, then they should pay attorneys and lobbyists to work to get the NJ legislature to change it, otherwise, do what everyone else is required to do....

Those “dealer” jobs wouldn’t go anywhere if the manufacturer sold direct. People still need cars serviced, the mechanics would still be based in New Jersey, and payroll taxes would still be paid.

Once you eliminate that fluff, there’s zero justification for keeping dealers.

quote:

Originally posted by reloader-1:
Those “dealer” jobs wouldn’t go anywhere if the manufacturer sold direct. People still need cars serviced, the mechanics would still be based in New Jersey, and payroll taxes would still be paid.

Once you eliminate that fluff, there’s zero justification for keeping dealers.

The argument could easily be made that the Service side of dealerships would simply become independent shops, who would charge less and dump the slug workers...boss' nephew, owner's wife's family.

It isn't like Tesla stocks parts at dealerships anyway

Would imagine that there would still be dealers, their role would be different.

The only way this works though is GM creates an EV brand and has a new dealership agreement for those stores, or they get state laws changed.