Tesla Motors Inc (NASDAQ:TSLA) shares gained nearly 3% after the New Jersey Assembly approved a bill to allow consumers to buy electric cars directly from a manufacturer, and New York approved a measure letting Tesla keep its five retail locations in that state.
The New Jersey measure now heads to the state Senate, where it must likewise gain approval before it can be forwarded to Gov. Chris Christie for action. In March, the NJ Motor Vehicle Commission had voted to block Tesla from direct sales.
In New York, Gov. Andrew Cuomo signed legislation to let Tesla keep its five existing retail locations in the state while strengthening auto dealer franchise protections.
The New York law will permit TSLA to pursue direct sales only through its existing five stores; beyond that, it has to go through dealerships. The legislation cements a deal announced in March among Tesla, the New York State Automobile Dealers Association and the Greater New York Automobile Dealers Association.
The law also clarifies the general prohibition on manufacturers owning or controlling a retail franchise and sets limits on manufacturer-required renovations by their franchises in New York. In late morning trade, Tesla (TSLA) was up 2.96% to $231.27.
Tesla Motors Inc (NASDAQ:TSLA) Passes Direct Sales Hurdle In NJ
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