Tesla Motors, the luxe electric car company, has been dealt a big blow. The New Jersey Motor Vehicle Commission approved a proposal that will ban all auto manufacturers from selling cars directly to consumers. This is a major hit to the electric car company, as it does not use dealerships to sell its vehicles. Texas and Arizona have previously banned Tesla from selling its own cars.
Regulations will take effect April 1.
In a blog entry posted this Tuesday, Tesla railed against New Jersey and its governor Chris Christie, saying it was lied to by the governor’s administration, which had promised to postpone the vote and leave it in the hands of the Legislature.
“Unfortunately, Monday we received news that Governor Christie’s administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature. The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey,” the blog post said.
Christie’s administration spokesman Kevin Roberts said that it was Tesla, not them, that was trying to override normal procedures and go against legislative rules.
New Jersey residents will now have to travel outside the state to purchase a Tesla car, which of course means poorer sales in the long run. Tesla’s shares slipped 1.85% at the end of the trading day.
Tesla is looking to expand manufacturing in order to sell more of its Model S sedans. However, all is contingent upon whether more states decide to ban its practices.