New Jersey Allows Factory-Direct Sales by Tesla

New Jersey has signed a law allowing Tesla Motors Inc. to sell its electric cars through as many as four company-owned dealerships in the state.

Similar bills are before legislatures in Georgia and Texas. New Jersey's new statute modifies a previous law that prompted the state's Motor Vehicle Commission to revoke Tesla's dealership permits last year.

Tesla is contesting laws in virtually all states that require carmakers to sell their vehicles only through independent dealerships. The company contends such laws were passed to prohibit car companies from competing with existing dealers and don't apply to a newcomer manufacturer that has no dealer network.