WASHINGTON – (March 18, 2015) The Information Technology and Innovation Foundation (ITIF) praised the state of New Jersey following its decision today to lift the so called “Tesla Ban,” which prevented Tesla Motors from selling cars directly to consumers in the state. Under the new directive the company will be able to open up to four dealerships in the state.
“This action by the state legislature and Governor Christie is step in the right direction,” says Rob Atkinson, President of ITIF. “We would prefer there was no limit on dealerships Tesla can open but four is better than zero.”
Tesla’s unique business model bypasses auto dealers and sells cars directly to consumers. This reduces costs and allows additional consumers to gain access to environmentally friendly, zero-emissions vehicles. The practice has been the subject of significant controversy, due largely to opposition from auto dealers, and led several states to take the drastic step of banning direct auto sales to consumers all together.
“Efforts to block sales of Tesla are designed specifically to assist legacy businesses at the expense of an innovative, new player in the market, Atkinson added. “Governments should be in the business of promoting and incentivizing innovation not hampering it.”
A bill allowing zero-emissions vehicle manufacturers to sell cars directly to consumers at up to four licensed locations in New Jersey was unanimously passed by the State Assembly late last year, approved by the State Senate earlier this week and signed into law by Governor Christie today.
“In recognition of this forward looking decision, ITIF is rescinding the Luddite Award it gave New Jersey in February for blocking Tesla,” Atkinson says. “We only hope that other states utilizing similar policies follow New Jersey’s lead.”
