New Jersey Governor Chris Christie has just signed a bill allowing Tesla Motors to operate its company-owned direct-sale stores in that state.
The bill, whose full text you can read here, counteracts a statewide ban on direct-to-consumer sales that was enacted in April 2014.
The new bill passed the state’s General Assembly on Monday, from which point Gov. Christie had a 45-day window to decide whether to sign the bill into law.
Importantly, the bill is not just a one-brand exemption for Tesla. In a statement, Gov. Christie’s office describes the new law as “giving manufacturers of zero emission cars, including Tesla, the ability to sell directly to New Jersey consumers at up to four locations in the state.”
The bill dismantles parts of a regulation enacted by the New Jersey Motor Vehicle Commission in April 2014, which required new car dealers in the state to obtain a franchise agreement in order to do business. That piece of legislation forced the electric carmaker to turn its two existing New Jersey storefronts into “galleries”—Tesla-owned facilities where prospective customers could kick the tires on a showroom floor, but could not take a test drive, discuss pricing or purchasing, or place a reservation. Customers in New Jersey were still able to place their own Tesla order at home through the automaker’s website, but were not allowed to receive any guidance or advice from Tesla Gallery employees in the process.
For more on the distinction between Tesla Stores, where customers can take test drives and discuss purchases, and Tesla Galleries, where they cannot, read our in-depth coverage of the fight over Tesla sales in the state of Connecticut.
With Gov. Christie’s action today, Tesla can turn its existing two New Jersey facilities into full-fledged Stores, and open up to two additional stores. The bill requires Tesla to also open at least one dedicated service center in the state.
- Inside Connecticut’s Fight Over Tesla Dealerships
- Column: An Open Letter to Tesla From Your Friendly Local Car Dealers
- Tesla Full Coverage: Reviews, Specs, Photos, and More
While today’s news adds one more state where Tesla can sell directly to customers, the automaker still has an uphill battle in states like Virginia, Arizona, Texas, and Michigan, where old (and arguably long-outdated) state laws force car buyers to go through independent dealerships who may not have their best interests in mind.
Both Christie and Tesla celebrated the move on Twitter today:
A huge victory in New Jersey for consumer choice: We are open for business! @GovChristie
— Tesla Motors (@TeslaMotors) March 18, 2015
As has become tradition, we expect New Jersey’s dealership organizations to vehemently and vociferously criticize today’s decision. We’ll be watching intently to see what today’s new law means for the state of car sales nationwide.
This story originally appeared on roadandtrack.com.
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