Tesla to sue New Jersey over car dealer rules
NEWARK, N.J. (AP) — Electric-car company Tesla Motors has filed notice it intends to sue New Jersey over a ruling that would stop it from selling its vehicles in the state within two weeks.
The notice was filed last week to the state appellate division.
Palo Alto, Calif.-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 franchise agreements before they can be licensed. That prohibits companies from using a direct-sales model as Tesla does.
Tesla says pressure from a state auto dealers' association prompted the Motor Vehicle Commission's recent action.
The head of the association says Tesla must play by the same rules as other dealers.
