In an appeal filed with the Superior Court, the company argues that the NJMVC move — viewed as a backroom deal brokered by Gov. Chris Christie’s administration — was illegal and will “directly harm New Jersey consumers,” according to excerpts published by The Star-Ledger.
“As the MVC itself recognized when it licensed two Tesla locations in 2012, New Jersey law was clearly written to prevent car manufacturers from exploiting their greater market power to compete unfairly against dealership franchises that sell their cars, something that simply doesn’t apply to Tesla because it has no dealership franchises,” the notice of appeal reads.
Dealer groups reportedly lobbied Christie to enforce a ban on Tesla’s direct-sales model, arguing that the company was violating existing dealer franchise laws. The administration complied and quietly tightened the restrictions, justifying the measures as merely an enforcement action rather than a new interpretation of the law.
Tesla may be able to keep both of its Garden State showrooms regardless of the outcome of the legal challenge. State legislators have already drafted a bill that would explicitly allow the company to continue operating and sell directly to consumers.
Amid public backlash and with narrowing support from government officials on both sides of the aisle, dealer lobbyists in Ohio and New York agreed to compromises that would maintain existing franchise laws but allow Tesla to keep its current showroom locations.
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