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Tesla Declares 'Huge Victory' in New Jersey

March 24, 2015
2 min to read


DETROIT - Mark one more state off the list of places where Tesla Motors is barred from selling its electric cars directly to consumers, reported MLive.


New Jersey governor Chris Christie signed a bill Wednesday that overhauled the Garden State's auto dealership laws, including allowing direct sales by automakers with zero-emissions vehicles, according to Bloomberg. The law also requires Tesla to maintain a site where the company's customers can get their vehicles serviced.

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Tesla is still banned from selling its vehicles directly to consumers in 25 states, including Michigan.


Gov. Rick Snyder signed legislation in October that Tesla and others see as extremely restrictive for the California electric car maker to do business in the state.


Snyder noted as he signed HB 5606 into law that Tesla's unique, non-dealership, direct-to-consumer sales structure was already illegal in Michigan before the legislation cruised through Lansing.


The legislation centered around transaction fees dealerships charge their customers, but critics say dealership-backed amendments were added at the last minute that put greater restrictions on Tesla.


After signing the bill, Snyder said the change in law merely allows manufacturers who do not have their own franchised dealers to sell through another manufacturer's network of franchised dealers.

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"They will be required, just as they are now, to sell through a franchised dealer, and not directly to consumers," the governor said in a statement. "HB 5606 does nothing to change this fact. At most, it clarifies the existing requirement in Michigan law."


Snyder added that lawmakers should also discuss the current business model of car dealership networks to determine whether it's best for consumers.


"We should always be willing to re-examine our business and regulatory practices with an eye toward improving the customer experience for our citizens and doing things in a more efficient and less costly fashion," he said in October.

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