New Jersey bans Tesla’s direct sales model, third state to do so

The New Jersey Motor Vehicle Commission has just passed a rule earlier today that will signal the end of Tesla’s direct sales of cars to consumers, being the third state in the country to do so after Arizona and Texas. This might end up as a rather huge blow to Tesla, who happens to be a manufacturer of all-electric cars, as they do not depend on dealerships in order to sell its rides, taking on a very different business model compared to the route that other car companies take. 

Today the New Jersey Motor Vehicle Commission passed a rule that will end Tesla’s direct sales of cars to consumers. Tesla, a manufacturer of all-electric cars, does not lean on dealerships to sell its vehicles as other car companies do. The rule goes into effect in April. New Jersey is the third state to ban the practice of selling cars directly to consumers, joining Arizona and Texas in preventing their residents from easily buying a more environmentally friendly ride. The New Jersey Coalition of Automotive Retailers was in favor of the rule change, unsurprisingly.