FTC Takes Tesla’s Side in Battle Against States

Tells Missouri and New Jersey to shove it.

The ongoing debate surrounding Tesla’s direct sales approach– with states like New Jersey and Missouri all but banning the company’sstrategy with complex legislation – took a turn in Tesla’s favor the other day.Several Federal Trade Commission officials told these states theirdealer-favoring laws constituted a form of “protection that is likely harmingboth competition and consumers." The FTC has made similarstatements in the past, calling these laws “bad policy” and “protectionist.”

Answering questions from New Jersey and Missouri officials,the FTC representatives stated that NJ’s current law “is very likelyanti-competitive and harmful to consumers.” Unfortunately for Tesla, thesestatements pertain only to the two states involved in the discussions, and willnot assist in pushing the matter forward on a national level just yet.

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