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.

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.

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