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]
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