Tesla And Musk Shouldn't Get NJ 'Loophole,' Say Assembly Candidates Bhalla And Brennan

HUDSON COUNTY, NJ — Two New Jersey Assembly candidates say that the state should end a decade-old “Tesla Loophole” that benefits the automaker by allowing it to conduct direct-to-consumer sales instead of just selling cars through dealerships.

'Hands Off' Protestors Hit Streets Of Hudson County

Hoboken Mayor Ravi Bhalla and Jersey City-based affordable housing expert Katie Brennan, who face a Democratic primary battle for two seats in June, said Tesla CEO Elon Musk — the richest man in the world — should not be entitled to a preference that he originally got when his electric cars were new to the market.

The exemption was created in 2015 to allow Tesla to sell vehicles directly to consumers while other automakers must sell through dealerships, the pair said.

The exemption became law in March 2015 under Gov. Chris Christie, according to reports at the time.

"The exemption was originally passed to help Tesla enter the market as the only significant manufacturer of electric vehicles at the time," the pair said. "Only 54,000 electric vehicles were sold in the U.S. in 2015, a small fraction compared to the 1.2 million electric vehicles sold in 2024."

Bhalla said, “There's no reason for Tesla to get special treatment now that electric cars are mainstream. If direct-to-consumer sales is the right approach, then everyone should have that opportunity. If not, then we should end the 'Tesla loophole' and have a level playing field.”

'Painful Irony' In Musk Firings

Both candidates also said there's a "painful irony of Tesla receiving special treatment while CEO Elon Musk has overseen illegal mass layoffs of federal workers and cuts to federal programs that he justifies with unfounded allegations of fraud and waste."

As a special government worker, Musk has overseen and planned tens of thousands of firings in federal departments including Veterans Affairs, Social Security, and public health.

This week, federal Secretary of Health and Human Services Robert F. Kennedy Jr. said that at least 20 percent of the fired health workers may have to be hired back. Others have had their firings overturned in court, meaning taxpayers may be on the hook for legal fees.

Officials have said that the workers were fired not for cause, but because they were "provisional workers" who were either recently hired or might have switched departments after a long stint in another office, including disabled veterans and others.

“It’s absurd that New Jersey is giving Tesla special treatment, both from a policy perspective and given everything Elon Musk is doing to harm our state,” said Brennan. “He claims to be hunting for fraud and waste yet he’s the one benefitting from special rules that no other company gets."

She added, "The government doesn’t exist to boost Tesla’s profits.”

The pair are running in the Democratic primary for New Jersey Assembly in the 32nd legislative district, which represents Hoboken and Downtown Jersey City.

They face two other Democratic tickets for the two seats in June 2025, then will face other candidates in November's general election.