Tesla Motors Stock & Cars: New Jersey Bans Direct Sales Of Tesla Cars; Company Speaks Out, Urges Gov. Christie To Change Law
Tesla Motors will stop selling its cars directly to New Jersey consumers starting on April 1 after the state ordered the company to comply with state laws, reports say.
The cars will still be able to be sold in the Garden State but only through car dealerships. However, the company has decided to stop selling cars in the state entirely, despite the state's huge market of consumers.
In a blog post, Tesla wrote a note to its consumers and elaborated upon the recent news in New Jersey.
"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."
The letter went on to explain other issues that the company has dealt with in New Jersey and finally finished it with a request to the governor.
"We urge the Christie administration to act in good faith and withdraw the proposed amendment, or amend it so that it reflects the true intent of the Legislature and the people of New Jersey," the letter concluded."
On the other side of things, Christie's office also spoke out as the news unfolded.
"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," Governor Chris Christie's spokesperson, Kevin Roberts, said this week according to Forbes. "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."