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Tesla not allowed to sell cars in New Jersey

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New Jersey is following the lead of several other U.S. states and voted Tuesday to prohibit automakers from selling cars directly to consumers.

As you may know, Tesla chose to bypass the dealer system, instead opting for factory stores.

“This is an affront to the very concept of a free market,” the company wrote in the blog post.

Tesla even accused the administration of New Jersey Governor Chris Christie of bad faith, arguing it has “gone back on its word.”

Business Insider reports that the New Jersey Coalition of Automotive Retailers (NJ CAR) and its employees gave $696,749 to politicians and campaign committees in the Garden State from 2003 through 2009, while Tesla made no donations.

“A major responsibility of NJ CAR is to represent New Jersey’s automotive retailers in legislative matters,” its website says. “The Coalition has been active at every session of the New Jersey Legislature in defending the industry against adverse legislation, as well as initiating and supporting legislation favorable to franchised New Jersey new car and truck retailers.”

According to a Christie administration spokesman, Tesla had been warned as soon as it set up shop in the Garden State that it “would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law.”

Will Tesla revise its sales model or will a majority of U.S. states agree with it?

Source : businessinsider.com