Tesla has had a bad March thus far after it lost its ability to sell cars in New Jersey, but not all hope is lost. The electric car manufacturer has reached an agreement with New York Governor Andrew Cuomo that will allow the company to continue selling cars directly to consumers without going through dealerships.
Some states have reinforced old car manufacturer laws–this is what happened in New Jersey–and in doing so, Tesla has been prevented from running any of its own stores within those states. Luckily, consumers in New York will still be able to buy a Tesla Model S.
The main restriction that Cuomo did place on Tesla however, is that the company will only be able to utilize its five current business locations and will not be allowed to open anymore.
This compromise is light-years better than the decision that was reached in New Jersey, though it does show that rulings from other state governments have a wide reaching impact on the decisions made by other states.
Bills that had been proposed by lawmakers in New York would have required Tesla to sell all of its cars through dealerships, and since that is simply not an option for the company, it would have effectively been banned.
[The deal is a] win-win for consumers, for the franchised auto dealers, and manufacturers who play such a vital role in New York’s economy, and for cutting-edge companies like Tesla. – Andrew Cuomo, speaking with the Wall Street Journal\
At least this state battle has not resulted in an angry Elon Musk (Tesla’s CEO) or auto dealerships and lawmakers throwing insults at the company and its CEO. In New Jersey, the battle resulted in anger on both sides and some proponents of the strict auto sale laws even made ad hominem attacks.
Question – Will Tesla be able to thrive with all of the state restrictions?
Summary: Tesla and New York Governor Andrew Cuomo have reached a deal that will allow the company to continue selling cars in the state. Tesla will be prevented from expanding past its five current business locations.
image credit: topspeed