The startup had been working with the New Jersey Motor Vehicle Commission and members of the Christie administration to defend against the restrictive laws being pushed by the New Jersey Coalition of Automotive Retailers. The issue was expected to be formally discussed before the New Jersey Legislature, however Tesla claims the administration is preparing to quietly skirt the open debate and quietly approve the proposed laws at a meeting later today.
“The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey,” Tesla said in a statement. “This new rule, if adopted, would curtail Tesla’s sales operations and jeopardize our existing retail licenses in the state.”
The NJMVC already approved several retail licenses for the company, however the agency allegedly delayed issuing renewals and new licenses for the past nine months and has refused to respond to requests, calls and letters.
“The delays have handicapped Tesla in New Jersey, where, without clear licensing procedures and fair enforcement of existing law, we have been forced to delay our growth plans,” the statement adds. “At the same time, neither Tesla nor the taxpayers of New Jersey have been able to participate in any of the analysis or been granted a hearing as requested last year when this was first proposed.”
The Christie administration has responded by noting that New Jersey already has dealer franchise laws, putting the burden on Tesla to “engage the Legislature” on a bill to legalize their direct-sales operations.
“This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning,” the statement added, as quoted by Philly.com.
Tesla is currently fighting similar battles in many states, achieving success in a handful. In other states that prohibit direct sales, the company typically establishes a promotional presence and handles the sales via California.
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