N.J. Democrats Target Tesla’s Special Dealership Exemption

What a difference 10 years can make. Ten years ago, New Jersey Democrats eagerly drafted legislation to help Tesla bypass state law and sell its electric cars directly to Garden State customers.

Tesla CEO Elon Musk was then known for his business accomplishments rather than his political views, which were more left-leaning.

According to Politico, Musk is now taking a right turn in politics. He heads the Department of Government Efficiency under Trump’s administration, and Democrats are racing against Tesla to get its dealership exemption taken away.

Under Gov. Chris Christie, the New Jersey Motor Vehicle Commission adopted a rule in 2014 that interpreted state law to mandate all car manufacturers sell their vehicles through licensed dealers. But Tesla’s business model bypasses the dealership and sells directly to consumers at its showrooms.

Greenwald, the Assembly Majority leader, said he was “working with my colleagues in this Legislature to clean the governor’s mess.” In 2015, Christie signed a Democrat sponsored bill that allowed electric cars to be sold directly to consumers.

Tesla was the only company that fit this description in New Jersey.

Heather Simmons, a freshman Democrat assembly member from New Jersey, introduced a bill on Thursday to remove the Tesla special exemption. This was just one day after Democrat Assembly Candidates Ravi Bhalla (left) and Katie Brennan (right) called for New Jersey’s end to this exemption. Simmons told Politico it wasn’t a politically motivated decision.

In a telephone interview, Simmons said that ten years ago, the law made sense because Tesla was the sole manufacturer of EVs. It was a way to boost electric vehicles in New Jersey. “It makes no sense today, with multiple manufacturers dealing in EVs and the fact that they are the only ones able to bypass the dealer model. It’s unfair. “Let’s level the playing field.”

Brennan’s statement appeared to connect the targeting of Tesla’s exemption to Musk’s rebranding.

She said: “It is absurd that New Jersey gives Tesla special treatment. This is both from a perspective of policy and in light of everything Elon Musk does to harm our state.”