Tesla Challenges Jersey Car Regulations

Wants to sell directly to consumers, instead of through dealers.

The conflict is simple: Electric car-maker Tesla Motors wants to sell its vehicles directly to the Jersey car-buying public. New Jersey officials want Tesla to use dealerships, under state laws that really, truly aren’t about preserving the livelihoods of the state’s car-dealers but most assuredly are about accountability to consumers. Or so they say.

In any case: “Electric-car company Tesla Motors has filed notice it intends to go to court to appeal New Jersey’s ruling that would stop it from selling its vehicles in the state within two weeks. The notice, filed last week to the state appellate division, seeks to overturn regulations imposed by the state Motor Vehicle Commission that require new-car dealers to have franchise agreements before they can be licensed. Those regulations, proposed last fall and implemented last month, effectively will prohibit Tesla from using its direct-sales model. The company, based in Palo Alto, California, has been selling cars at two locations in New Jersey for about two years.” (AP)

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