For more than a century, New Jersey law required cars and trucks to be sold through an extensive network of franchised dealerships that competed for vehicle sales and service. In March 2015, after many months of NJ CAR lobbying against the push, the New Jersey Legislature passed legislation authorizing Tesla to sell directly to consumers. There were limitations, but the damage was done. Eleven years later, Tesla remains the only manufacturer that has secured an exemption from the New Jersey Franchise Practices Act (NJFPA). THE BATTLE CONTINUES IN 2026 The special treatment Tesla received in New Jersey enticed other manufacturers, such as Rivian and Lucid, to lobby for the same exemption so they can also sell directly to consumers. In fact, they opened galleries/studios in New Jersey, taking advantage of the accommodation awarded solely to Tesla, this time by the New Jersey Motor Vehicle Commission (NJMVC) as part of a settlement agreement in November 2018. Tesla agreed to not SELL at these locations, only to DISPLAY vehicles and refer consumers to one of their four (4) authorized sales locations to complete a purchase. This created a massive loophole that Tesla has exploited over the past eight years, where they opened several more galleries throughout the state. In addition to Rivian and Lucid, other EV-only brands tied to legacy manufacturers, including Scout and Afeela, are also advocating to sell directly to consumers and continuing to challenge states that use the franchise distribution model. Right now, their momentum seems by LAURA PERROTTA, President, NJ CAR The Fight Against Direct Sales Reignites in New Jersey PRESIDENT’S MESSAGE 6 NEW JERSEY auto retailer
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