New Jersey Bans Tesla Sales
Tesla isn’t your standard automaker. They build cutting-edge electric vehicles with the latest technology that produce zero emissions and are actually desirable to look at and drive.
That is not the only aspect that sets Tesla apart, however. Instead of having a vast dealer network to sell its vehicles, Tesla sells directly to the public. They have small stores inside malls to sell cars and have located their service centers elsewhere. This non-traditional approach is causing them problems in many states with the latest being New Jersey.
A new law comes into effect April 1st that requires new car dealers to have a franchise agreement in order to get licensed. Since Tesla is the seller and the manufacturer, it can’t create the agreement with itself, therefore making any Tesla dealers in the state illegal. Arizona, Colorado, Virginia and Texas all have similar laws in place which ban new Tesla sales.
Tesla will be appealing the decision.
