Tesla Motors, the California-based electric luxury automaker known for its direct sales practices is now a step closer to restart the delivery procedures in New Jersey.
One of the state’s Senate committees has introduced a rule that would permit Tesla to resume direct customer sales, with the bill approved unanimously by the Assembly in June and on Monday by the Senate Commerce Committee. The next procedure is for the bill to reach the full Senate and then Governor Chris Christie, who previously stated it would allow Tesla to resume its direct sales practices as long as it operates within the law’s confinements. Tesla, headquartered in Palo Alto, California, was previously allowed (from April 1) to showcase the vehicles it produces – though not also sell them. Back then the state’s Motor Vehicle Commission asked for the implication of local dealers and billionaire entrepreneur and co-founder Elon Musk took to a blog post to accuse the governor of protecting major manufacturers and discouraging innovation.
Currently in the state the automaker has two “galleries” in Paramus and another one in Short Hills, with purchasing customers redirected for the rest of the procedure off-state, including to New York. Tesla was also banned from engaging in its direct sales practices by Michigan Governor Rick Snyder last October, with the state joining Texas, Arizona and Virginia in limiting the sales of Tesla’s Model S luxury electric sedan. US dealers have been legally battling Tesla as the automaker has elected to skip the usual procedure of selling its vehicles through franchised dealers – instead opting to own the sales outlets.