The hype around Tesla Motors — the brainchild of PayPal co-founder, founder of SpaceX, and entrepreneur-extraordinaire Elon Musk — is one of global proportions. The company's once-futuristic highway-capable electric vehicles continue to grow in popularity, in and outside of the US. Tesla has made its way to selling direct to consumers in many states, but not without legal hindrances from legislatures and dealerships that have aimed (successfully) at preventing Tesla from selling its luxury electric cars with the direct to consumer model. But the Federal Trade Commission (FTC) has taken an official stance in opposition to such state regulation, and in statements on May 11, reiterated its position.

Marina Lao, the Director of the Office of Policy Planning, Debbie Feinstein, the Director of the Bureau of Competition, and Francine Lafontaine, the Director of the Bureau of Economics penned a hefty letter stipulating the reasons behind the FTC's support of direct-to-consumer sale on a broad scale. They note that the fundamental principle of competition holds that consumers should determine the scope of the market: what is bought, how much is bought, and what types of items are bought. In that vein, Tesla should be able to sell its cars to consumers without facing legislative obstacles or litigation from competitors — which it has, historically.

The FTC commented on the changes in state legislation that have limited Tesla-style sales structure. Commenting on New Jersey specifically, the Commission said, “Some states that closed the door to direct manufacturer sales, like New Jersey, have recently opened the door by a crack. Legislative changes there (and in several other states) now permit Tesla to operate a handful of direct sales outlets in the state. But the opening in the law is a tiny one—only a few outlets, and only for Tesla Motors.”