Electric car manufacturer Tesla Motors could be forced to halt all direct sales of its vehicles in the state of New Jersey. In a blog post, the firm said the administration of Governor Christie had reversed its decision to delay a ruling that would block Tesla from selling cars in its own bricks-and-mortar stores.
The proposal, which Tesla Motors said could be approved at a meeting today, would force all vehicles in New Jersey to be sold through an independent auto-dealer. Although Tesla Motors could continue to run its stores, they would be reduced to walk-in showrooms where potential sales couldn’t be completed.
“This move comes in spite of discussions with the Governor’s staff as recently as January, when it was agreed that Tesla and New Jersey Coalition of Automotive Retailers would address their issues in a more public forum: the New Jersey Legislature,” the company said. “This new rule, if adopted, would curtail Tesla’s sales operations and jeopardize our existing retail licenses in the state.”
In a statement sent to Business Insider, a spokesperson for the Christie administration defended its decision. “Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation and Tesla has been aware of this position since the beginning,” they said.
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