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Auto dealers fire back at Tesla CEO: ‘This Musk guy, he wants all the profits for himself’

19
Mar
2014

Last week, New Jersey announced that it would begin enforcing a ban on the direct sale of automobiles by manufacturers, a change that will cripple electric-vehicle maker Tesla’s business in that state. The company’s CEO, Elon Musk, responded with a fiery blog post accusing state legislators of cutting a backroom deal with traditional franchised auto retailers — retailers with which Tesla has consistently refused to do business — and playing by mafia rules. This is not a new law, Tesla is operating illegally, and as of April 1st, they will be out of business unless they decide to open a franchise. Appleton is right that New Jersey had a law on the books banning direct sales from manufacturers, but that was a relic of a bygone era before dealerships were a firmly cemented incumbent.

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