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New Jersey Blocks Tesla-Owned Sales Outlets
New Jersey's motor vehicle commission has issued new rules on car dealership licensing that may force Tesla Motors Inc. to close its two factory-owned outlets in the state, Automotive News reports.
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New Jersey's motor vehicle commission has issued new rules on car dealership licensing that may force Tesla Motors Inc. to close its two factory-owned outlets in the state, Automotive News reports.
Tesla says state law allows the company to directly sell its electric cars in the New Jersey rather than go through the usual franchise system. The company notes it has been licensed to do so for the past 16 months by the motor vehicle commission.
Gov. Chris Christie's office says it made it clear to Tesla from the start that the company would need to pass a bill in the state legislature that would specifically allow direct sales. Tesla had hoped to continue selling cars while pursuing the legislation.
New Jersey's auto dealer group insists it doesn't want to bar Tesla from operating in the state. But it says Tesla must either conform to the franchise rules or get the state law changed.
Tesla is finding similar resistance elsewhere. About 20 states have specific statutes that make direct selling difficult, and 48 have restrictions on factory-owned dealerships, according to the National Automobile Dealers Assn.
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