US: New Jersey changes its mind on Tesla’s direct sales image

Back in 2014, the New Jersey state legislature decided that Tesla Motors’ direct sales practices were illegal in the region and banned them accordingly. Now the electric luxury automaker has caught the wind of change and Elon Musk’s company can once more sell cars directly to consumers.

New Jersey governor Chris Christie recently signed the necessary bill, with the move to allow Tesla’s direct sales practices part of a broader law initiative to reshape the state’s automobile franchise practices. After the announcement, Musk took to his usual Twitter media interface: “Thanks to everyone that supported Tesla in New Jersey! We couldn’t have done it without you.” The law states that the company needs to meet certain criteria to be allowed in the state – including having a service center in the state for the electric cars to be repaired.

Back in March 2014, the New Jersey Motor Vehicle Commission unanimously decided to ban direct auto sales practices and the regulation became effective the following month. The move was seen as beneficial to the traditional car dealers, which in the US acquire franchises from the major automakers to sell their products. Tesla instead directly provides the customers with its cars and tries to avoid the “hassle” of having an intermediary – the franchised dealers. The new law states that car producers of zero emissions vehicles, such as Tesla, are allowed to use up to four vending locations in the state to sell cars directly to consumers.

Via Forbes