State-level legislation can create significant barriers to autonomous vehicle adoption, as demonstrated by New Jersey's proposed bill (S. 1677 / A. 3968) that would restrict Tesla's autonomous vehicle technology despite the technology's potential safety benefits, and Alabama's franchise laws that prohibit Tesla's direct sales model, illustrating how regulatory frameworks can conflict with emerging technology deployment.
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Deep Dive
This bill specifically bans Tesla from the New Jersey market
Added:All right. So, listen. I follow this guy named Sawyer Sawyer Merritt on X and he put up this post and I want to read it to you and then we're going to just have a small little conversation here. Hope you don't mind. It says, "Tesla, rather than prioritizing real safety outcomes and performance, this bill specifically bans Tesla from the New Jersey market.
Every arbitrary roadblock is a delay for the people who need this life-changing technology most. Legislation that bans Tesla's proven AV technology from the market is not caution. It's anti-competitive favoritism. Last year, 578 people were killed in traffic incidents in New Jersey. This is unacceptable. More than 94% of serious crashes are attri How do you say that word?
>> Attributed.
>> No, it says attributable. Attributable.
That feels weird. attributable uh to factors caused by human error, including impairment, distraction, and fatigue.
Autonomous vehicles cannot drive drunk, distracted, or drowsy. States that have embraced this technology are already seeing improved safety performance for older and disabled residents who cannot drive. Autonomous vehicles aren't merely a convenience. They represent independence. So, this is this is the first one that came out. Um he he posted that New Jersey Tesla owners uh email went out to them warning them that New Jersey could block autonomous vehicles and to take action. And it says proposed legislation moving through Trenton right now would impose restrictions so severe that true driverless deployment would remain illegal. Okay. And then it's got um this legislation moving through Trenton right now. S1677/ A3968 would create New Jerseys first autonomous vehicle pilot program. That sounds like progress. It isn't. As written, the legislation imposes restrictions so severely that Tesla's autonomous vehicle technology couldn't legally operate in New Jersey. And then uh it says parents, this affects real people, right? Parents that want their children to be safe on the commute to school. Aging populations that want to maintain their independence. People with disabilities who hope for more mobility options, not fewer. Rural rural communities that lack access to public transportation.
And then um you know it pretty much goes back over the first things that we saw.
Now I will tell you that my very first thought and judge me however you want to here. My very first thought when Kevin first mentioned, my husband, he first mentioned that um New Jersey was going to ban Tesla, I was like, it's because New Jerseyy's a [ __ ] hole. Like I thought that maybe it was because of all of like the the teen takeovers and stuff and people's cars being all jumped on. I was like, well maybe Elon doesn't want Tesla there because of like the the violence that's been going on in New Jersey lately. But that's not exactly what it is. I would like to go at this from two viewpoints. Okay. Number one, the way that this is written by even Sawyer Merritt um is or is this written by Tesla? Cuz he says Tesla. So maybe Tesla wrote this part.
Okay. Either way you look at it when it says here autonomous vehicles cannot drive drunk, distracted, or drowsy.
States that have embraced this technology are already seeing improved safety performance. You know that's right. But I think a lot of people look at uh full self-driving as a pass to just get shitfaced drunk and just have your car drive you around. And technically, you're supposed to be able to pay attention to what is going on around you because it is full self-driving supervised. It's not unsupervised. And if you are blackout drunk or so tipsy that you need your car to drive you from point A to point B, that's still not safe. So, I can see from the the viewpoint of the people in New Jersey why they would want to maybe hinder the ability for people to be able to technically still um drink and drive.
Because just because your hands aren't on the steering wheel doesn't take away the fact that you are legally drinking and driving because you still have to be able to take over said steering wheel if FSD messes up. if something is going on, you have to be legally able to drive that vehicle. And if you're using it as a way to get you from the bar to the home, then that's not safe, no matter how you look at it. So, I can understand where where New Jersey is coming from. I also think that they want to be able to give people speeding tickets. They want to be able to pull you over for driving drunk. They want to be able to do all these things that technically puts money into their police coffers and their government coffers and whatever else. So trying to say no to autonomous vehicles, it's it's not really about taking away safety from people. I think it's more about them worrying about taking away money from their their selves because uh having the older population and it kind of goes back to the same thing of driving drunk. Having the older population where it gives them the ability to get from point A to point B where they couldn't do that on their own is still still a scary situation if they have to be able to take over the vehicle because FSD messes up or something happens. Right? When you're in a heavy rain, it tells you FSD is kind of like working in a lower capacity because of impaired vision. If the car um thinks that you're not paying attention and you have to take the wheel and you can't because you're drunk or because you're scenile or because you're having a medical emergency, that's not safe for the other people still around you. So again, I can see some of the reasons behind why New Jersey has said this. I still think it's a dumbass idea, but I can understand kind of sort of where they're coming from. I personally want older generations and people um who have any sort of disabilities to be able to still have their independence and get from point A to point B. But you do have to take into consideration it still needs to be safe for everybody else around the Tesla with the full self-driving and the person inside it who needed the help getting from point A to point B. Whether it's because of a physical impairment or because of a drunken um impairment, it doesn't really change the fact that it is full self-driving supervised. Uh if this was an unsupervised thing that they were trying to block, I think I'd actually feel a little bit different. I'm not sure though because that's not the case.
That's not what we're working here.
We're working with apples and apples.
So, um I I am glad I don't live in New Jersey. I'll put it to you that way because I very much love full self-driving. I think it's amazeballs and it would suck if they took it away here in Florida, but that's not how Florida rolls. So, I think we're good. Um, but I mean, even in Alabama, you can't even buy a Tesla because uh Alabama's state law says that a motor vehicle has an engine. Well, Tesla doesn't have an engine. So, you can't even buy one because of some dumbass pre like predated or post-dated law or outdated law, whatever word you want to use there. But, you can get it serviced in Alabama. You can't drive.
You can't buy it there, but you can buy it in a completely different state. And then how does that even work? Honestly, how do how do you get it registered? I guess you can still register it.
>> You just can't complete the transaction.
>> You just can't complete the transaction.
So, you're driving unregistered in Alabama if you buy a Tesla in another state.
>> No, no, no. You can buy in another state. You'll have a temporary tag and then you complete the registration in your state. You just can't you just can't conduct the sale in the state of Alabama. Okay. So, you can't conduct the the sale in the state of Alabama, but you can buy the Tesla in another state and then finish your registration in Alabama, which in and of itself is kind of [ __ ] Like, if I can register it in the state and drive it in the state and like it live in the state, why can't I just buy it in the state? Cuz you're kind of sort of Alabama shooting yourselves in the foot of income that you could be making from the the the Tesla sales departments being in there. the the chargers and all this other stuff.
Either way, so it turns out I owe you guys an apology, but I also feel like Tesla owes me an apology. And I'm going to explain why. So the whole, you know, the reason why Teslas can't be sold in Alabama is because of the whole engine laws is what we were told by a sales associate at Tesla. And for some reason, I know better, but I took it as fact and went with it. That's on me. So now I'm eating crow pie or humble pie or whatever pie it is and I'm going to give you guys the actual truth behind why you can't buy a Tesla in Alabama. So Tesla cannot operate as a dealer um own or run company owned sales facilities or make direct sales and leases to the public in Alabama due to state franchise laws that prohibit manufacturers from doing so. So this is the thing Tesla's direct sales model versus traditional franchise laws.
This is I mean this actually makes more sense than oh because it doesn't have an engine. I don't know why my brain but anyway Tesla sells vehicles directly to consumers through its website and company owned stores and galleries. It does not use independent franchise companies or dealerships unlike virtually all other automakers which we've talked about. Anywhere you go if you want a Tesla it's Tesla. You're not going to um Gary Smith this or Jim Ellis that or whatever else. It's always Tesla itself. It's not franchised out. So, it's going to be uniform across the board on how things are run. Makes sense, right? But obviously, it turns out that's what bites them in the butt here. So, according to this, the um this vertically integrated approach gives Tesla greater control over pricing, customer experience, inventory, and branding. Many states have motor vehicle franchise laws, often dating back decades, designed to protect independent car dealers. These laws typically prevent manufacturers from owning or operating their own dealerships or selling directly to consumers, viewing it as unfair competition that could undercut or eliminate franchise dealers.
So basically, Alabama is looking out for the little guy, uh, if you want to look at it that way, by making sure that the manufacturer themselves can't come in and have their own spot. And, you know, you never see just Ford. It's always Jim Ellis Ford. You never see just, you know, Jeep or just Mitsubishi or just Chevy. there's always somebody's name or company logo attached to it. Right? So, this is Alabama's specific uh prohibition. Alabama's law is particularly restrictive under the Alabama Motor Vehicle Franchise Act, Alabama Code Title 8, Chapter 20, specifically whatever that double S looking thing is, 820-4, unfair and deceptive trade practices. It is unlawful for a manufacturer or its representatives to one, own an interest in a new motor vehicle dealership, two, operate or control a dealership, three, make direct sales or leases of new motor vehicles to the public in Alabama, or uh number four, own, operate, or control a facility for motor vehicle warranty or repair service work. These actions are classified as unfair and deceptive trade practices. Limited exceptions exist like temporary ownership for up to 24 months while trying to sell the facility or certain bonafide partnerships with independent investors, but they do not accommodate Tesla's standard direct to sales or direct sales model. The law's stated purpose is to regulate dealings between manufacturers and dealers and prevent manufacturers from bypassing or competing directly with independent franchises. And so this was in 2016. At the time, state senator Tim uh Tom Watley introduced uh Senate Bill 22 to create an exception allowing manufacturers of alternative fuel vehicles like Tesla's EVs to sell and lease directly to the public. The bill died in committee and never became law.
So in the early stages of Tesla, you had at least one person uh Tom Wallley who's like, "Hey, listen. This is going to be huge. We should probably do this." And then the rest of the people in Alabama are like, "No, we're not doing it."
Right? As of late 2024, although it is currently mid 2026, Alabama remained one of the stricter states with near total ban on manufacturer direct sales and historically service centers as well.
Now, no Tesla dealerships or sales stores galleries are in Alabama as of 2026. Tesla does not operate company-owned retail locations for vehicle sales in the state. Tesla vehicles can still be purchased right by Alabama residents via the company's website. Orders are often processed as outofstate transactions in states where direct sales are permitted with delivery arranged accordingly. So there's still like the loophole. Technically, you can still live in Alabama and order your Tesla in Alabama. It's just going to be sold in a different state. And I would say probably Florida because we have a Tesla dealership in Pensacola right there at, you know, basically the line of Alabama and in Florida and maybe possibly in Mississippi or wherever else they they do it. But according to this, in August 2025, Tesla opened its first service center though in Birmingham in a repurposed building. This marked the company's first physical service presence in the state, even though the law had historically restricted manufacturer operated service facilities. So they at least let a service dealership in there. So they're they're kind of bending the rules for that part, but until they allow Tesla as a as a manufacturer seller dealership to move into Alabama, this is the best you're going to get, right? But at least it's something because you have to realize there's so many people in Alabama who do own a Tesla and having to drive to a completely different state to get it served this serviced is a pain in the ass for for anybody, right? So that's where we're at. Um Louisiana is another one that doesn't allow I believe the same thing. I believe neither Alabama nor Louisiana prohibits Tesla sales on the ground that Tesla do not qualify as cars or automobiles because they lack an engine. that claim is misinformation or a misunderstanding and it's because of the direct sales. Right?
So in Louisiana, a 2017 amendment to Louisiana revised statute 32-1261 explicitly banned manufacturers from selling new vehicles directly to consumers with limited expectations.
Tesla challenged this in federal court and the lawsuit was later settled.
Again, the ban is about the sales model, direct versus through dealers, not vehicle classification or engine type.
And I think it's important to note since we were under the impression based off a conversation we had with a sales associate from Tesla um not in Alabama obviously but in I believe it was Pensacola or Tallahassee. I don't remember which one where we talked to the person. We were under that mind frame because of that conversation and that knowledge that we were given. So now that we've uh figured out the truth and rectified it, hopefully you forgive me. We'll do a little bit better going forward on making sure we bring you all the complete fact of what's going on.
The whole thing with New Jersey, I can kind of understand it. I still think it's stupid. I I think trying to say no is like trying to say you want to stop electricity from becoming popular.
You can fight it as long as you want, but at some point it's not really going to matter cuz you're going to lose.
Tesla's got a lot of money behind it.
one, but then the the voice of the people I think should matter some. And so if the residents of New Jersey are, you know, up in arms over this, I think that the government in New Jersey should listen.
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