New Law Allows Direct Sale Of Tesla Cars In New Jersey
Follow CBSDFW.COM: Facebook | Twitter
TRENTON, N.J. (CBSDFW.COM/AP) — New Jersey Governor Chris Christie signed a measure Wednesday that would allow the sale of Tesla and other zero-emission cars in the state, a legislative move that wasn't successful here in Texas.
The new law comes about a year after the New Jersey Motor Vehicle Commission issued regulations requiring cars to be sold through franchises.
The Palo Alto, California-based company markets its vehicles directly to consumers, and Tesla CEO Elon Musk protested the New Jersey regulations last year. He said the company chose not to sell through franchises because most of their revenue comes from gasoline-powered cars leaving little incentive to sell electric vehicles.
A message to the company seeking comment Wednesday was not immediately returned.
The legislation also requires companies selling cars directly to consumers to maintain a service facility and to report sales figures to the state.
Christie promised last year to sign legislation letting companies like Tesla sell directly in the state.
On Wednesday, he took credit for fulfilling the promise.
"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," Christie said in a statement.
Democrats, who control the Legislature and sent the bill to Christie's desk on Monday, praised the development. Democratic Assemblyman Lou Greenwald called the new law a "win-win" for New Jersey residents.
Christie had 45 days to act on the bill but chose to sign it just two days after legislators sent it to him.
In 2013, HB 3351, also known as the Tesla bill, was presented in the the Texas House. The bill would have allowed manufacturers of 100-percent electric vehicles or all battery-powered vehicles to sell directly to consumers, but it did not pass.
Texas law forbids automakers from operating their own dealerships. Tesla has no franchised dealerships in the state, only car galleries that display the vehicles. The company has one such gallery at Dallas' NorthPark Center.
(©2015 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)