Tomahawk, WI 03/13/2014 (Basicsmedia) – Tesla Motors Inc. (NASDAQ:TSLA) shares moved slightly up by 3.02% to $241.49 after a weak long of declining trend. As new challenges kept creeping up against its sales model, the electric vehicle maker appears more resilient yet with a strong approach. Its latest obstacle on sales front is the Direct Sales Ban from the Motor Vehicle Commission of New Jersey State. The news came as a bit of shock to both the market and Elon Musk; his blog post accused that state Governor Christie’s administration has “gone back on its word”.

The News

The governor’s office assured the company of a fair legislative process before making any final decision. Matters were under discussion between the state government and the car-maker when the bill was suddenly passed yesterday. Musk terms it as a subversion of “democratic process” from the dealer association.

The Context

Despite a strong shift to marketing orientation and consumerism elsewhere in the manufacturing sector the customary business model for automobile industry are still sales oriented. This is why car dealer associations in multiple states felt frustrated over the Tesla Motors Inc. (NASDAQ:TSLA) owned-stores as these took away the customary revenue share “commission” of the dealerships.

Tesla Motors Inc. (NASDAQ:TSLA) currently owns 20 showroom across different states in the U.S. It is currently fighting for “justice” against sales ban in many of these states including Ohio, where it is facing similar State office mediated talks with dealer associations.

Next Up, Ohio State

A day before yesterday the Tesla counterparts met with auto-dealers to discuss whether the business model be banned or not. However, the carmaker and auto-dealers are still 360 degrees on the issue, as Tim Doran the Ohio president of the auto-dealers net, said it was “cordial” but nothing “new” developed. On the other hand his counterpart Vice president Diarmuid O’ Connell, said Tesla Motors Inc. (NASDAQ:TSLA) demonstrated “fundamental willingness” to “engage on this” but he feels cautious over the car-dealers’ rigid stance. The final fate of these may give the stock price another jolt in the coming days.

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