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New Jersey Administration Stopped Tesla (TSLA) Outlets To Sell Cars

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In New Jersey, Elon Musk wishes to sell cars directly to the public but the company announced that through an auto franchise, Tesla Motors Inc (NASDAQ:TSLA) will sell its cars instead of its own stores on Tuesday. It happened because Management of Chris Christie who is New Jersey Governor, accepted a rule through which cars will be sold through franchises only.

The rule was proposed in October and New Jersey Motor Vehicle Commission accepted it now which is confirmed by a representative at the commission. Through this rule, a franchise license is needed to sell new cars. Franchised dealership is the traditional adaptation of many auto companies. On Tuesday, shares of electric car maker decreased 1.9 percent at $234.41 on the Nasdaq.

In New Jersey, two stores of the company are functional but now these stores would efficiently be forced to shut down and stop. This will also stop the company to open any new outlet in the state.
According to Tesla, this new rule is totally opposite to the long-lasting position of (New Jersey Motor Vehicle Commission) on Tesla’s stores after earlier issuing two dealer licenses to company. The electric car maker also said that introducing electric cars in the market is very vital as it is still a new technology and people should have information about it.

Providing information is way of educating users about the advantages of going electric along with enhancing selling capacity of cars and providing best possible consumer choice for Americans.
In New Jersey, Tesla is functional from a year and the company is well aware that to set up their new direct-sales operations under New Jersey rule, they need to follow rules of the government, according to a spokesman in the governor’s office, Kevin Roberts. He also said that without legislation, it appears to be inappropriate to unilaterally alter the way cars are being sold in New Jersey by this government.

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