Tesla Motors Inc (NASDAQ:TSLA) is facing hinders in selling its cars directly to customers as it is forced to follow a conventional auto franchise model of authorized dealerships system in many states. This week, a rule is accepted by the New Jersey Motor Vehicle Commission that instead of company’s own outlets, new motor vehicles can only be sold through certified franchisees so two Garden State stores will have to be shut down before April 1, 2014 by Tesla.
The selling of cars openly to consumers is also banned by two other states including Texas and Arizona. The electric car maker’s aptitude of selling car openly to consumers is put in limitations by Colorado and Virginia as well and some other states are also trying to follow the same move.
Tesla users will also face damage as a bill for electric cars that would end a $5,000 tax credit is under consideration by Georgia officials. But the similar state diplomat also planned rules that would permit Tesla to retail as many as 1,500 vehicles in Georgia annually who submitted that bill. Under immunity from auto dealer policy, the company is permitted to sell 150 cars in the state per year at present.
The electric car maker is influenced that would have banned direct sales last year in Minnesota in both the state House and Senate.
The decision of New Jersey was quite surprising for Tesla. For accelerating the rule-
making procedure instead of permitting the rule to decide how to proceed, the company was highly annoyed with management of New Jersey Gov. Chris Christie (R).
According to the company, they were thinking that all parties are doing for good purpose but unluckily they got news that management of Governor Christie has gone back on its phrase to hold-up a planned anti-Tesla rule so that the issue could be settled through a fair process in the governing body.
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