Tesla Sales Banned in New Jersey Effective April 1

Tesla Sales Banned in New Jersey Effective April 1

The state of New Jersey has banned Tesla‘s direct-to-consumer stores, effective April 1, 2014.

New Jersey joins a list of other states that have banned Tesla’s stores including Arizona, Colorado, Virginia and Texas. Tesla’s retail stores have been fighting an uphill battle against traditional dealerships for nearly two years now with New Jersey becoming the latest state to oppose the American automaker’s direct sales approach. A proposed rule change requires all new-car dealers to provide a franchise agreement in order to receive a license from the state. Considering Tesla is both the manufacturer and distributor of its vehicles, it can’t create a franchise agreement with itself, effectively banning the sales of Tesla vehicles from New Jersey.

In addition, the proposed rule will require dealers to maintain facilities of at least 1,000 square feet, with room to display two cars and the capability to service customer cars on site. The Tesla Stores, including the two currently in New Jersey, are located inside shopping malls with its service centers located separate from those showrooms.

Expect appeals to be made now that the decision has come down and a Tesla sales ban is essentially effective starting April 1 in New Jersey.

GALLERY: 2013 Tesla Model S


[Source: Transport Evolved]

Discuss this story at our Tesla forum

  • David

    Apparently there is no such thing as a free economy in NJ.

  • ProudLiberal


  • Shawn Merrill

    Its a worthless state anyway, just par for the course for them.

  • Rickard

    As a person living in Europe this type of ban would be something I could expect in Russia or mabye Venezuela – but in the land of the free market? – funny …. odd… scary… all at the same time

  • Tarik El-Yabani

    Sadly, the USA stopped being the “land of the free market” a long, long time ago. Shame.

    This ban is disgusting and is dirty politics at its best.

  • hawkstone

    That sure is a moronic statement.

  • dan

    So there’s all this push for people to buy electric or hybrid and fuel efficient vehicles, and we ban them? Where is the logic in that decision.

  • Agent 007

    This wont impact NJ since its so small. You can drive out of state in a heartbeat. Buy one and come back.

  • wwwwww

    The logic is in keeping our addiction to big expensive oil alive and healthy.

  • Rod

    Just because you don’t physically put gas and oil in an electric car does not mean you won’t use just as much or even more fossil fuels by charging the batteries with electricity produced by burning fossil fuels… Think on that for a while…

  • Sam

    $69-$93,000 you gotta be kidding. Wore out car long before ANY savings realized!

  • Sam

    They are trying to stop stupid!

  • Honest Abe

    It’s not about saving money at the pump, it’s about saving the environment.. and having a REALLY nice car to do it in!

  • Nic Megert

    Tesla does the same as apple.

    However, Apple Stores are legal. Why?

    A totally wrong approach such bans!

    Such laws are known otherwise from Russia and China !!