The Wall Street Journal reports that New Jersey has passed regulations that appear designed to force electric car manufacturer Tesla into abandoning its direct sales approach and partnering with licensed auto dealers. The new regulations passed today forbid renewal of licenses to sell motor vehicles without showing a franchise agreement between manufacturer and independent dealer – which, as WSJ points out, “[Tesla], as both manufacturer and dealer, can’t do.”
In addition, the new regulations impose requirements on automotive showrooms that appear to have less to do with consumer protection than targeting Tesla’s favored approach of locating in malls and commercial strips, requiring premises larger than 1,000 sq. ft., vehicle servicing facilities, and at least two cars on display.
posted by Anant Raut
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