A committee regarding consumer affairs had voted in favor of the motor company to be allowed to sell its cars directly to its customers in New Jersey. The company was facing a ban just for New Jersey which was the company would not sell its cars directly to its customers. The ban was put on the company after the new ruling came from the administration of New Jersey which was that a person should have a franchise agreement with an auto manufacturer in order to be granted a license to sell. This was not liked by the company and they regarded as a barrier to their expansion in various states of US.
A new ruling is the main requirement for the time being. Tesla motors received support from the New Jersey’s committee regarding this affair with a score of 4-0 which would allow Tesla Motors to sell their cars directly to the people. For this action the company will have to follow some easy rules. According to the ruling Tesla Motors would be only allowed to have 4 stores. The amount is for the current situation and can be changed. It is also supposed to have a facility that would probably serve the vehicles. A sponsor of the bill regarding the allowance of Tesla Motors in New Jersey has highlighted the importance of the company to the state and also has said that taking its license would be a big mistake.
The CEO of Tesla Motors Musk is against the dealership propaganda. According to him the administration or the authorities regarding this bill have no knowledge of customer interest. This dealership bill might be fatal for the company as the new model S does not require services such as maintenance and repairs which contribute to most of the profits made in dealership. According to the CEO the automobiles coming now are advanced and have no place in a world of middle-class. The company has also blamed the governor for this dealership bill. The company alleges that the authorities don’t have any knowledge of consumer security and the authorities are wronged by calling this bill as a secure consumer way. The CEO Musk calls this bill as a way to sell people and thinks it as a failed modern way which might ruin the better traditional times sale method.
The FTC has assured support for Tesla Motors direct sale model. This means that the Tesla Motors have some partners against this law which is quite threatening to consumer security. According to some of the ministers of the FTC this will not bring the consumers closer but will make them run away from the company. The FTC has proposed a reasonable solution that is to sell cars through a much more competitive process which is much better than the new direct process. The main solution for this problem is to work on a competitive process and to develop it to the highest level.