Tesla Motors Inc (TSLA) Now Banned In 5 States, Restricted In 2 Others

Tesla Motors Inc (TSLA) Now Banned In 5 States, Restricted In 2 Others
Unsplash / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) recently lost the battle for its direct to consumer sales model in New Jersey (in a rather back-handed way, it seems). However, while the automaker’s losing battles get a lot of press, it’s worth noting that Tesla can still sell cars in most of the country using its sales model.

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Tesla fights battles in two states

Forbes contributor Mark Rogowsky put together a nice map showing where Tesla Motors Inc (NASDAQ:TSLA) is able to freely sell its cars directly to consumers. Currently there are restrictions in process to limit Tesla’s ability to sell cars directly to consumers in two states, which are New York and Ohio.

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Tesla Motors Inc (NASDAQ:TSLA) has already won the battle in three states—Minnesota, Massachusetts and North Carolina—and lost the battle in Arizona, Texas, Virginia, Maryland and New Jersey. There are restrictions—but not complete bans—in Colorado and Georgia.

Tesla Map Ban States

Tesla tantalizes drivers

Tesla Motors Inc (NASDAQ:TSLA)’s presence in Arizona, Texas, New Jersey, Maryland and Virginia is now basically one about just teasing drivers. The automaker has showrooms in those states but is unable to actually sell its cars. The people who work in those showrooms—whatever their job title is—can’t even tell potential customers how much the cars cost or help them buy one. However, Tesla’s cars are still available for purchase on the company’s website. In Maryland, customers can even test-drive a Tesla, but they still can’t buy one there.

In Georgia, there’s a pretty odd restriction on Tesla Motors Inc (NASDAQ:TSLA)’s ability to sell cars there. The company is only allowed to sell 150 of them in the state. That falls under an exemption from the auto dealer rules. A bill that’s pending in the state legislature would raise that number to 1,500, although drivers would then not receive the state’s $5,000 rebate for an electric vehicle.

In Colorado, the automaker has one store located in just outside of Denver. A state law was passed there after that store opened. As a result, the one store is allowed because it has been grandfathered in, but Tesla Motors Inc (NASDAQ:TSLA) can’t open any other stores.

Tesla wins in some states

If you’re keeping score, Tesla Motors Inc (NASDAQ:TSLA) has managed to use the law to its advantage in the three states where it has triumphed. In other words, while auto dealers are lobbying for laws which ban Tesla’s sales model, Tesla has been able to win in some state legislatures. In both Minnesota and North Carolina, a bill which would have kept Tesla from selling there died in the legislature. In Massachusetts, Tesla sued and actually won after auto dealers tried to keep it from selling there.

According to Rogowsky, Tesla Motors Inc (NASDAQ:TSLA) is now banned from selling directly to 57 million people (the residents of the five states which outlawed its sales model). The automaker faces restrictions on selling to 15 million people and could lose its ability to sell for 31 million others. He notes that if the automaker loses in both New York and Ohio, that will mean nearly a third of the U.S. population will have difficulties in purchasing its cars. Tesla did win one battle in Ohio in December though, so that’s at least a foothold there.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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  1. I just want to say that the restrictions and bans placed against Tesla around the U.S. are discriminations against Telsa. It seems that dealers hate Tesla for coming up with a better way of selling to the public. The dealers want a piece of any Tesla revenue / profits and are crying fowl just because they haven’t been able to garner any of those profits / revenue.

  2. I am in favor of New Jersey’s ban on Tesla Motors. We have Tesla outlets right across the border in PA, which means buyers can circumvent the ban by purchasing the cars in Pennsylvania, and paying our 6% sales tax instead of whatever the Garbage State’s sales tax is. I hope New York bans Tesla as well, because then Elon Musk can set up delivery points in Milford or Matamoras PA (right off I84), and also on the border on I81. We can use the tax revenue, and the related jobs.

  3. There must be something else, not only a matter of car-dealers’ lobbies….
    Maybe oil-companies: are they pushing back electric clean cars to preserve their interests?
    These cars would set off the path for a new revolution in transportation, and it’s unbelievable US don’t want to be part of.

  4. Stop spreading FUD. Tesla is not banned in these states, they just cannot sell directly. You can drive Teslas in these states, there are Superchargers there, they can have showrooms and employees, they can even deliver vehicles there. “Ban” implies that even possessing a Tesla would be illegal by putting the car in the same category as drugs or other “banned” items.

  5. Please forward to Elon Musk:

    The Ninth Amendment of the US Constitution states:

    “The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.”

    So TSLA must state that it retains the right to sell cars directly to the customer, under the Ninth Amendment of the US Constitution. Those that deny or disparage this right are domestic enemies of the US Constitution.

    TSLA must sue in Federal District courts simultaneously so that it might win in one. All Federal Judges are corrupt. So beware of these.

    TSLA must file the law suits under Title 42, Section 1983 of the U.S.C. This is denial of Constitutional rights under color of authority. The suits must name specific persons as defendants. For Example, Chris Christie of New Jersey.

    Title 42, Section 1983 of the U.S. Code states:

    “Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress, except that in any action brought against a judicial officer for an act or omission taken in such officer’s judicial capacity, injunctive relief shall not be granted unless a declaratory decree was violated or declaratory relief was unavailable. For the purposes of this section, any Act of Congress applicable exclusively to the District of Columbia shall be considered to be a statute of the District of Columbia.”

    All States agreed as a condition of their admission to the Union of the United States that the U.S. Constitution is the Supreme Law of the Land. All laws that conflict with the U.S. Constitution must be rescinded.

    The American Civil War proved that no State may secceed from the Union. No confederation of Stated may secceed from the Union unless it can win the civil war that follows.

    According to the U.S. Army Military History Institute, the military war deaths in the U.S. Civil war were 625,000, those of WW 1 were 116,516 and WW 2 were 405,399.

    Texas, Arizona, Virginia, Maryland, Delaware, New Jersey, New York, Ohio, Georgia, and Colorado are controlled by domestic enemies of the U.S. Constitution, because they deny or disparage TSLA’s right to sell cars directly to the consumer. If they are serious about continuing to do so, they must secceed from the USA and win the resulting civil war.

    How badly do these domestic enemies of the U.S. Constitution want to take away the Constitutional rights of the citizens and persons within their jurisdictions?

  6. Small government free market republicans don’t want Tesla to participate in the free market so they make new laws and bigger government.

  7. I think this is a misleading.article.They are not “banned”. They are restricted from selling directly due to dealership unions’ lobbying activity. They can still sell in those states through other channels.

  8. Please sign this petition

    “Inform New Jersey that markets should be free for Tesla Motors and for everyone”

    “We ask that you inform Governor Chris Christie and the New Jersey Motor Vehicle Commission to overturn their hastily decided rule to ban Tesla from selling direct to consumers. The backroom negotiated amendment was put in place to protect dealers and not protect the people of New Jersey. In a free market, the people should decide for themselves.”

    https://petitions.whitehouse gov/petition/inform-new-jersey-markets-should-be-free-tesla-motors-and-everyone/ptHTHYMP

    3,172 signatures as of Mar 17, 2:45pm PDT

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