Tesla (TSLA) Direct Sale Blockage Is Done By Motor Vehicle Commission Not Christie

Recently, Tesla Motors Inc (NASDAQ:TSLA) was banned from direct sales in New Jersey and the decision comes when eight-member Motor Vehicle Commission that includes members hired by the Republican governor and members of Christie’s cabinet voted on March 11 collectively.

However, limitations on direct selling of Tesla’s models to consumers are but by New Jersey lawmakers, according to Governor Chris Christie. The electric car maker is facing hinders of direct sale from car dealers who want sales should be handled by them. In New York, Ohio, Georgia and Minnesota, dealers have disputed that vehicle owners and customers feel more comfortable with free sellers. Recently, Tesla faced a sever limitation from Texas dealers who passed a rule of limitations. Similarly, restrictions are forced by Colorado, Virginia and Arizona as well.

Christie also mentioned that Tesla is not thrown away by him as he supports new companies to establish business in New Jersey to help revitalize economy of the state. On 18 March, Christie said at a town hall meeting in South River that the electric car maker was not following the rules of state. He has no issues with direct selling of its models personally but the company is violating the rule of New Jersey.

According to a Tesla spokeswoman, Elizabeth Jarvis-Shean, who mentioned the comments of Elon musk that the company’s two New Jersey outlets that are working in Short Hills and Paramus will be transformed into “galleries” where employees will tell specifications of models but selling process will not be done anymore.

The governor also mentioned that his management wanted to collaborate with Tesla but the New Jersey panel voted collectively to put ban on direct sales of Tesla and allowed selling of new vehicles through franchise dealers. The electric car maker should have to ask government for removing ban on direct sale.

On 18 March, the company’s shares have increased 2.6 percent to $240.04 in New York and about 60 percent rise is observed in 2014.