New Jersey law orders Tesla Motors to close stores after state bans direct auto selling

A Motoramic report published on Yahoo News said that the New Jersey Motor Vehicle Commission approved several amendments that has essentially shut down Tesla Motors' operations in the state. The newly-implemented changes to the franchise system in New Jersey resulted to the barring of selling cars without dealerships and the loss of work of Tesla's 27 employees at its two factory-direct stores in the state.

Motoramic said the changes the franchise system has been held off by the commission after Tesla requested to postpone the passing for the former to weigh in whether Tesla's sales model was allowed by New Jersey legislature. According to the report, the Tesla Model S maker is the only automaker in the state who does not use dealers when selling their cars like every other automaker.

In its order, the commission has forced Tesla to shut its stores by April 1st this year, saying that the automaker should have complied with state rules like the others had.

"There is no evidence that the franchise system results in a monopoly, the stifling of innovation, an increase in pollution, or dependency on oil. (The state franchise laws) result in fair competition among new car dealers and prevent manufacturers from creating a monopoly, which ultimately results in a benefit to consumers," the commission said.

The latest development between the battle between Tesla and car dealers in the state marked a blow to the automaker's insistence that it should be the one who would sell its cars directly to customers, Motoramic said. Tesla has already met resistance to its sales model in the states of Texas, Virginia and Arizona, and car dealers in New York, Ohio, Massachusetts, among other states, have filed lawsuits to prevent Tesla to conduct its mall-store sales approach in its stores.

In its official Twitter account, Tesla has cried foul over the speedy legislation procedure, Tagging Governor Chris Christie's official handle, the company's tweet read, "@GovChristie vowed to let legislative process work, but instead of sticking up for NJ consumers he's fast-tracking anti-Tesla regulation."

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Tesla Motors Inc, New Jersey Motor Vehicle Commission, New Jersey franchise system

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