Governor Chris Christie today followed through on his commitment to sign legislation allowing Tesla Motors to have lawful direct sales operations in New Jersey. The bill changes the law in New Jersey and removes the prohibition on direct sales by auto manufacturers who do not have franchise agreements, giving manufacturers of zero emission cars, including Tesla, the ability to sell directly to New Jersey consumers at up to four locations in the state.
“I said last year that if the Legislature changed the law, I would sign new legislation put on my desk and that is exactly what I’m doing today,” said Governor Christie. “We’re pleased that manufacturers like Tesla will now have the opportunity to establish direct sales operations for consumers in a manner lawfully in New Jersey.”
The bill, A-3216 / S-2098, partially supersedes prior statute and corresponding regulations put in place by the New Jersey Motor Vehicle Commission in April 2014 that required new car dealers to have a franchise agreement in order to sell new cars in the state.
In addition, the legislation signed today requires a vehicle manufacturer engaging in direct sales at an established place of business in the state to also maintain a servicing facility. Manufacturers must also report annually to the Division of Taxation as to the number of vehicles sold in New Jersey.