This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tesla Regains Spark as It Fights N.J. Rule:

NEW YORK (TheStreet) --New Jersey hasn't driven away Tesla, (TSLA - Get Report), yet. The electric car manufacturer is asking the N.J. Superior Court to overturn a Department of Motor Vehicle's decision that prevents the company from selling cars directly to consumers.

The stock climbed more than 3% Wednesday after the news. And the rise had investors on maintaining that the momentum darling of 2013 had regained its positive mojo after falling 13% in the past month.

$TSLA Technicals are showing great signs of upside potential. Six months target: $279.62.

- msilcpom (@stoxlineinvestment) Apr. 2 at 10:58 AM

Sentiment on the stock is 69% Bullish, according to StockTwits' analytics.

$TSLA Just checked in. Very pleasantly surprised. Keep it going.

- alan goode (@alpagoode) Apr. 2 at 11:49 AM

Earlier this month the N.J. DMV ruled that all auto companies must sell through dealerships and offer vehicle service at sales centers. Tesla sells cars directly to consumers at glossy stores in high-end N.J. malls such as The Garden State Plaza Mall in Paramus and The Mall at Short Hills. The rule would not force Tesla to close stores, but it would turn them into stagnant show rooms where interested customers could only learn about the car and not complete a purchase.

Tesla CEO Elon Musk responded to the ruling with a scathing blog post accusing N.J. Governor Christie of putting the desires of the auto dealer lobby above consumers' best interests. Gov. Christie has said that he is only upholding the law.

It is not clear if the current DMV rule, as it stands, will really impact Tesla's business in the short term. There is currently a three-month wait to get a $60,000-plus Model S sedan. So it's not as though the appeal of a Tesla store was that it allowed customers to drive one off the lot. And N.J. customers can complete a purchase online and get the car delivered. Arguably, that's what many customers are already doing. Tesla also has test drive events throughout the state in which potential customers can take the sedan for a spin then go online and place and order.

Customers can also order, in person, in Manhattan. Though New York state is debating similar rules.

Longer term, a direct sales bans could impact Tesla's business. The company plans to produce a mass market electric car around the same time it gets its Gigafactory battery facility up and running in 2017. Such a car would battle more directly with other auto dealers and the ability to "drive one off the lot" might be needed to effectively compete. However, investors have faith that Elon Musk will prevail?particularly after seeing him in a 60 Minutes interview on Sunday.

$TSLA Finally got to watch the Elon Musk story on 60 Minutes from 3/30. Awesome, motivational, can't go to sleep now!

- Brian M (@Chevelle70) Apr. 1 at 10:02 PM

Tesla Motors Inc $TSLA : The Future Looks Bright

- ETF Daily News (@ETFDailyNews) Apr. 2 at 10:48 AM

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $211.53 -4.96%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs