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Tesla to Sue NJ Over Car Regulations

Tesla has filed notice that it intends to sue New Jersey over a ruling that would stop the electric carmaker from selling its vehicles in the state within two weeks.

Tesla Having a Hard Time Selling Cars in NJ
Justin Sullvian, Getty Images

The notice was filed last week to the state appellate division.

California-based Tesla claims it was unfairly targeted last month when the state Motor Vehicle Commission amended its regulations.

The regulations require new-car dealers to have a franchise agreement in order to be licensed. That prohibits companies from using a direct sales model as Tesla does.

Tesla claims pressure from a state auto dealers’ association prompted the MVC’s recent action.

The head of the association says Tesla must play by the same rules as other dealers.

 

(Copyright 2014 The Associated Press.  All rights reserved.  This material may not be published, broadcast, rewritten or redistributed.)

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