Photo: Shal Farley |
NJ Bans Direct Sales
Governor Chris Christie’s administration blocked Tesla Motors, the electric-car maker that doesn’t have franchised retail dealers, from direct auto sales in a move the company said could shutter its only two stores in New Jersey. Bloomberg
The state’s motor vehicle commission voted Tuesday to ban automakers from selling cars directly to consumers, instead requiring them to work through franchised dealers, a rule supported by the New Jersey Coalition of Automotive Retailers (NJCAR). Fox
The change will force Tesla to close its existing sales operations in the state and layoff 27 employees, according to documents posted to the commission's website. CNN
Tesla will stop selling cars in New Jersey on April 1. Like many other dealer groups across the country, New Jersey dealers did not want Tesla to be able to sell cars directly to customers. Two other states that have banned Tesla from direct sales are Arizona and Texas. Forbes
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