According to a Monday NJ.com article, Tesla Motors (TSLA) may soon be allowed to restart New Jersey direct sales, amid decision from Governor Chris Christie.
Tesla stopped selling its luxury electric cars at its two New Jersey showrooms on April 1, 2014 after the state rejected the company’s license to sell vehicles directly to consumers. New Jersey requires cars to be sold through a franchise. At the time, Gov. Christie blamed the state Legislature for writing the law which prohibited Tesla’s business model.
Christie said at a March 2014 town hall that while he had no problems with Tesla’s direct-to-consumer sales model, the law forced him to act.
“What they were asking for was an exception from the law. I’m not the king. I don’t get to grant exceptions to the law,” Christie said.
Now the Legislature has acted to change that law by passing a bill which would allow Tesla to restart direct sales at its two New Jersey showrooms, and to open two more.
The publication said the A3216 bill, which passed 30-2 with no debate, is now on Gov Christie’s desk. He has 45 days to act on it.
A spokesman for Christie told NJ.com the bill “will be reviewed.”
Tesla shares recently gained $6.78 to $195.46. In the past 52 weeks, shares of Palo Alto, California-based electric car maker have traded between a low of $177.22 and a high of $291.42. Shares are down 20.65% year-over-year and 15.17% year-to-date.
Leave a Reply