Monday, March 17, 2014

New York could become next state to put brakes on Tesla

CNBC reports:
If car dealerships have their way, New York could become the fourth state to effectively ban Tesla's direct sales model.

The president of the Greater New York Automobile Dealers Association told the New York Post last week that he feels confident the Empire State can follow New Jersey in blocking Tesla's business model, which cuts out dealers and sells cars directly to consumers.

The New Jersey Motor Vehicle Commission voted to block Tesla's sales model last Tuesday, drawing the ire of the electric carmaker's many fans. Tesla founder Elon Musk also lashed out at the decision, vowing to pursue legal remedies to fight the ban.

New Jersey's car dealership organization aggressively lobbied against Tesla's approach. Representatives of New York state's dealership lobby met with Gov. Andrew Cuomo last year to pitch a direct sales ban, according to Capital NY.
The resurrection of mercantilism. Check out at the end of the article the "justification" for restraining trade.