Tesla sales banned in third U.S state

Tesla Model S
12 Mar, 2014 11:37am Jonathan Burn

New Jersey follows Texas and Arizona in banning Tesla from selling its cars directly to consumers

Electric-car maker Tesla is facing an ever increasing battle to sell its cars after the American state of New Jersey banned the manufacturer from making direct sales. Tesla doesn’t have franchised dealers so sells directly to consumers, bypassing the U.S law of having to sell a car through a registered third party.

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New Jersey isn’t the first state to have banned Tesla from selling its cars in this way, with Texas and Arizona already imposing a ban. There are also initial plans from dealers in Ohio, New York, Minnesota and Georgia to try to block Tesla from directly retailing its models.

The ban in New Jersey will be enforced from 1 April, with the decision being made by the New Jersey Motor Vehicle Commission earlier this month. It comes as a blow to Tesla as New Jersey is one of the most lucrative markets in America for luxury car sales.

Tesla already has one of its stores in London’s Westfield shopping centre in White City, which opened last November. While the figure is not exact, the store attracts around 15,000 visitors per week but sales figures have not been disclosed. A spokesman at the store told Auto Express, “This is the continuation of the format we started in the U.S of placing our stores in locations with high foot traffic.”