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New Jersey Becomes Third State To Ban Tesla Sales

State motor vehicle officials have approved a regulation that would require all new car dealers to obtain franchise agreements to receive state licenses, a move critics say will hurt the electric-car industry's attempts to expand. The regulation, adopted Tuesday by the state's Motor Vehicle Commission by a 6-0 vote, effectively prohibits companies from using a direct-sales model, which cuts out the middleman and takes vehicles directly to customers through smaller retail establishments. It will take effect April 1. The regulation was supported by the New Jersey Coalition of Automotive Retailers, which has noted that state law has long required automakers to sell their vehicles through dealers. But Palo Alto, Calif.-based Tesla Motors, one of the electric-car companies that would be affected by it, called it "an affront to the very concept of a free market." Tesla said in a statement posted on its corporate website that it has been "working constructively" with the commission and Republican Gov. Chris Christie's administration since last year to delay the proposal so it could be handled through "a fair process" in the state Legislature. The company said the commission and the Christie administration went "beyond their authority to implement the state's laws at the behest of a special interest group looking to protect its monopoly at the expense of New Jersey consumers." Administration officials disputed Tesla's claims. "Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law," spokesman Kevin Roberts said. "This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning." Tesla has two retail locations in New Jersey and has planned to expand in the state in an effort to sell its electric cars, which retail for around $60,000 before incentives. Related Gallery Electric Cars And Hybrids Don't Have To Be Frumpy By the Numbers Tesla Car Dealers

Tesla gigafactory will source materials from North America to keep things green

It's one thing for the Big 3 to get tires and engine parts from cities along the US Rust Belt. It's another thing altogether, though, for Tesla Motors to source far more esoteric materials like graphite, cobalt and lithium from Canada and the northern US. But that's what the California-based company has in mind, and it's all in the name of environmental friendliness and cost, Bloomberg News says. Tesla is looking to bring its raw-material sourcing to this side of the Pond by the time it opens its massive gigafactory that may produce as many as 500,000 vehicles annually, Bloomberg says, citing Tesla spokeswoman Liz Jarvis-Shean. And while the raw-material price may be higher (and driven up further with the additional demand from Tesla), those costs may be offset by the fact that there will be far less transportation and logistics involved. "When all costs are considered, it should be cheaper to source most materials from as nearby as possible" - Tesla's Liz Jarvis-Shean "Transportation impacts are very significant on the heaviest raw materials if they need to be moved from halfway around the world," Jarvis-Shean wrote in an e-mail to AutoblogGreen, adding that there will be additional cost savings from reduced shipping time and less transit-related working capital requirements. "In the long term, when all costs are considered, it should be cheaper to source most materials from as nearby as possible." There are geopolitical issues as well. For instance, China is shutting down some of its graphite mines because of pollution issues, while much of the world's cobalt comes from war-torn Congo, though Tesla says it gets its cobalt from the Philippines. Most of the graphite in Tesla's Model S is of the synthetic variety from Japan and Europe. Of course, Tesla's still trying to figure out where to put its gigafactory, and has said it will be in one of four states: Arizona, Nevada, New Mexico or Texas. The factory will cost an estimated $5 billion and may support 6,500 jobs, so state governments are already starting to campaign to be the automaker's future production home. Regardless, Jarvis-Shean estimated that the sheer economies of scale from the gigafactory will reduce battery-pack costs per kilowatt hour for the company's "mass market" model (sometimes referred to as the Model E) by 30 percent after a full year of production.

Tesla Model S now the least-stolen car in the US

When is a Honda Accord more appealing than a Tesla Model S? When you're a thief. The Accord continues to reign as the most-stolen car in the US but the Model S is now claiming a new and interesting title: the least-stolen car in America. Last year, it wasn't even on the list. Of course, sometimes a Model S is stolen and the most famous case ended with tragic results. Last year there was an eight-way tie for "least-stolen." For the record, last year there was an eight-way tie for "least-stolen," made up mostly of SUVs and CUVs. The rankings were listed by a value called "claim frequency," which is how many were reported stolen per 1,000 units produced and where lower means it is stolen less. With a 0.4, these were the vehicles least wanted by thieves in 2013: Dodge Journey, Volkswagen Tiguan, Audi A4, Acura RDX, Toyota Matrix, Lexus HS 250 hybrid, Honda CR-V, Hyundai Tucson. This year, the Tesla clocked in with a 0.15. The average vehicle has a claim frequency of 3.51. Tesla has, of course, worked hard to make the Model S an unlikely target. It can be shut down remotely, it can be tracked and it has a hacker princess and cash prizes working to protect from other attacks. Tesla's Alexis Georgeson told AutoblogGreen that Tesla hasn't been able to verify the "least-stolen" moniker but said that, "We take the security of our cars very seriously and relentlessly continue to improve our vehicles via over-the-air updates, an ability unique to the industry. We will continue to work to stay ahead by providing the most sophisticated tools and technologies in our cars and working closely with security researchers to identify and address potential vulnerabilities." Value Walk says that another reason for the low theft rate is that there might be very low demand for Model S parts, since the cars are still under warranty and there aren't many on the road. Still, the claim frequency is a fair comparison, and by that metric the Tesla Model S looks just awful to at least one group of people.