Mar 11, 2014, 1:07pm PDT Updated: Mar 11, 2014, 3:13pm PDT
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Tesla Motors could be shut out of the New Jersey market.
Eric Van SusterenDigital Producer- Silicon Valley Business JournalEmail |TwitterThe New Jersey Motor Vehicle Commission passed a ruling today that will block the sale of Tesla Motors Inc. vehicles in the state, according to Bloomberg, which could ding the company's growth plans.
The rule would require an auto dealers franchise agreement in order to legally sell new cars in the state. But Tesla sells its cars through direct sales from the manufacturer straight to the consumer.
Tesla may have to close its two showrooms in the state, Bloomberg noted.
Tesla said it had been working with Christies administration to continue allowing direct auto sales in the state and that it was shocked to hear the news of the proposed change. CEO Elon Musk accused New Jersey auto dealers of subverting the democratic process to try to block Tesla sales and the company issued a blog post saying, Governor Christies administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature.
The fight echoes other battles the Palo Alto-based car company has had with mixed results. Lawmakers in New York killed a bill last summer that would have made Tesla sales illegal in the state, but states such as Virginia and Texas have included laws that cut the companys ability to sell cars.
The company said that its vital to sell the cars directly because its technology is relatively new and it sees educating consumers about electric benefits as part of its central mission to speed up the shift to sustainable transportation.
Eric Van Susteren is the Digital Producer at the Silicon Valley Business Journal.
Industries:ManufacturingSource: http://www.bizjournals.com/sanjose/news/2014/03/11/new-jersey-blocks-tesla-sales-in-state.html
