Tesla Banned From Selling Cars Directly in New Jersey
On April 1st, 2014, Tesla will no longer be allowed to directly sell its Model S to consumers in the state of New Jersey. Why? Because Tuesday, the New Jersey Motor Vehicle Commission voted to ban direct sales in the state, instead, forcing Tesla to sell through a dealer's network if they so choose. This new bill makes New Jersey one of the few states — along with Texas and Arizona — to ban the automaker's direct sales techniques. The amendment by New Jersey lawmakers– headed by Gov. Chris Christie– was originally scheduled to be delayed at Tesla’s request. But in a move that enraged the automaker, Chris Christie’s administration reportedly “had gone back on its word,” and revealed plans to Tesla only one day earlier to pass the amendment abruptly. PHOTOS: See More of the 2011 Tesla Roadster
This ongoing frustration by Tesla was revealed in a recent blog post on the automaker's website:
"Unfortunately, Monday we received news that Governor Christie’s 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 Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey."
"This new rule, if adopted, would curtail Tesla’s sales operations and jeopardize our existing retail licenses in the state."
PHOTOS: See More of the 2013 Tesla Model X
With the amendment now passed, Tesla is cut out from a very lucrative luxury buyer market in the Northeast. As soon as the April 1st date hits, New Jersey consumers will no longer have the opportunity to purchase a Tesla in the state. They will now have to travel across the river to New York and be burdened with a higher sales tax.
PHOTOS: See More of the 2012 Tesla Model S