Tesla Might Get Kicked Out of New Jersey Thanks to Dealer Licensing Ruling

2013 Tesla Model S

2013 Tesla Model S

It looks like New Jersey is the latest state to flip Tesla’s direct-sale concept the bird, as Automotive News reports the motor vehicle commission there has changed its dealer licensing rules. And not in Tesla’s favor. As you’re probably aware, Tesla insists on selling its quick and attractive Model S sedan directly to customers without the help of franchised dealers, a move that’s ruffled dealer associations’ feathers nationwide and prompted legal battles in numerous states. 

Curiously, Tesla already operates two stores and a repair center in New Jersey, and has done so for two years without issue. However, a change in the licensing rules effectively leave Tesla with two options: fighting, or bending and using franchised dealers to sell its cars. Tesla is, as you’d expect, frustrated, and it’s playing a cat-and-mouse PR game with governor Chris Christie’s administration over allegations that the governor’s office changed its stance on the issue without warning. Needless to say, it’ll be interesting to see which strategy Tesla ultimately chooses.

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Written by Lewis Shaw

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