New Jersey Bans Tesla Sales

The state of New Jersey has banned Tesla’s direct sales stores, joining a list of other states that have blocked the automaker from selling EVs via its direct-to-customer outlets.
Tesla Model S 1 photo
Photo: Tesla Motors
Yesterday, the New Jersey Motor Vehicle Commission passed a rule that bans manufacturers from selling cars directly to consumers. This means that companies that aren’t relying on dealerships to sell their vehicles, including Tesla Motors, are no longer able to do business across the state.

The proposed rule, which was immediately approved by the New Jersey Coalition of Automotive Retailers, will also require dealers to maintain showrooms of at least 1,000 square feet, with room to display at least two vehicles and a service center. Located inside shopping malls, Tesla Stores aren’t able to service customer cars on site.

The New Jersey Tesla ban, which the company describes as “an affront to the very concept of a free market” is effective starting April 1.

“We strongly believe it is vital to introduce our own vehicles to the market because electric cars are still a relatively new technology. This model is not just a matter of selling more cars and providing optimum consumer choice for Americans, but it is also about educating consumers about the benefits of going electric, which is central to our mission to accelerate the shift to sustainable transportation, a new paradigm in automotive technology,” Tesla Motors said yesterday, before the state of New Jersey adopted the rule.

Last year, the California-based automaker had its dealer license denied in both Virginia and Texas, while Arizona and Colorado have imposed restrictions as well.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Ciprian Florea
Ciprian Florea profile photo

Ask Ciprian about cars and he'll reveal an obsession with classics and an annoyance with modern design cues. Read his articles and you'll understand why his ideal SUV is the 1969 Chevrolet K5 Blazer.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories