The New Jersey Assembly voted unanimously Monday in favor of a bill that would let Tesla Motors Inc. sell cars in the Garden State again.
The measure (A3216) aims to allow Tesla and any other company selling zero-emission vehicles directly to consumers open a maximum of four stores in New Jersey, according to nj.com. Tesla currently has two showrooms in the state. The company must also have at least one facility that sells the cars.
77 legislators voted in support of the bill. One voted against it.
The New Jersey Senate must approve the bill before it becomes a law, Zacks reported.
The State Assembly approved of regulations introduced in March that prevented automakers from directly selling vehicles. The regulations also made it necessary for middlemen to be used. After being forced to close its stores in the state, Tesla filed an appeal against the regulation.
The regulation was justified by the commission on a state law from the 1970s that says all cars have to be sold through dealerships. Tesla officials, however, said their cars don't benefit from the old sales model because dealerships make most of the money from maintenance, while Tesla's vehicles don't need as much maintenance as older cars, nj.com reported.
Assemblyman Tim Eustace (D-Bergen), a sponsor of the bill, rallied on the Statehouse steps with Tesla owners, environmentalists and John Galandak, president of the New Jersey Commerce and Industry Association, to get the votes for the bill.
"We firmly believe that the bill sends the right message to innovators and entrepreneurs that New Jersey will not be an obstacle when creating, building or promoting and selling new products and services," Galandak said.
Tesla is banned from selling cars in Texas and Arizona as well. The company is also not allowed to open new stores in New York. However, the automaker is allowed to sell cars in its current stores in the state, but must use the dealership model for new stores, Zacks reported.
Fuel cell and electric cars are included as zero-emission vehicles. Tesla believes directly selling vehicles not only reduces the price, but also persuades consumers to buy electric cars.
The company's two showrooms in Paramus and Short Hills will stay open, but new cars cannot be sold there, nj.com reported.
Consumers in New Jersey can buy Teslas online and have them delivered. They can also buy the cars at Tesla showrooms in other states.
