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Tesla Clears First Hurdle in New Jersey Direct-Sales Battle

Motor Trend logo Motor Trend 6/18/2014 Erick Ayapana

Tesla Motors recently cleared one obstacle in its fight to once again sell cars legally in the state of New Jersey. Yesterday the state Assembly passed a bill that would allow Tesla to sell cars directly to consumers, Bloomberg reports. The bill still needs to pass the state Senate before getting the final approval from Governor Chris Christie.

Tesla previously sold cars directly to customers in the Garden State, but was forced to halt sales in April after its sales license wasn’t renewed. Accusations flew between the automaker and government officials, including Tesla’s claim that the governor’s office backed out on its promise allowing Tesla to continue selling in the state. Christie later said a more appropriate move would be for Tesla to go through the state’s legislature, which is exactly what the automaker is doing. There’s currently no timeline on when the bill would reach the state Senate. 2013 Tesla Model S© Provided by MotorTrend 2013 Tesla Model S

Tesla also faced backlash from the New Jersey Coalition of Automobile Retailers, which claimed that the automaker was breaking state law requiring all auto manufacturers to sell their vehicles through a franchised dealership.

Tesla’s fight in the state is an important one. New Jersey is the fourth largest market for luxury cars and Tesla hopes to increase its relatively small stake in the Garden State. The automaker also faces similar battles in a number of states including Florida and Texas.

Source: Bloomberg

2013 Tesla Model S© Provided by MotorTrend 2013 Tesla Model S
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