Wednesday, June 18, 2014

NJ Assembly, NY Governor Pass Direct Auto Sales Legislation

Tesla Roadster and Model S

Tesla is one step closer to resuming direct sales of its electric vehicles in New Jersey after the N.J. Assembly passes a bill that would allow it and other ZEV manufacturers to bypass the independent franchise system in selling electric vehicles.

Automotive News reports the bill comes after the state's Motor Vehicle Commission banned the automaker from using its business model within the state earlier this year. Once passed in the N.J. Senate and signed by Governor Chris Christie, Tesla and any other ZEV manufacturer who sold direct to the public prior to January 1, 2014 could now return to business in full.

Meanwhile, New York Governor Andrew Cuomo signed similar legislation that had already been approved, allowing Tesla to continue direct sales in its five stores. However, no other manufacturer is allowed to use the EV automaker's business model for their own, and Tesla's stores must be transferred to an independent dealer should things change for it. Cuomo said the bill would ensure "that both sides will thrive to be able to grow the market for cutting edge zero emission vehicles."



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