Business

Tesla cars hit by New Jersey ban

The Christie administration is trying to unplug the popular Tesla in New Jersey by making it harder to buy one.

The state’s Motor Vehicle Commission voted unanimously Tuesday at a hearing in Trenton to ban the direct sale of cars to consumers.

That would mean cars could only be sold through independent dealerships — and since Tesla owns its own showrooms it couldn’t abide by the new law. The electric carmaker operates two showrooms: one in the Short Hills Mall and the other in the Garden State Plaza mall in Paramus.

“There’s no question that this rule was aimed directly at Tesla,” Jonathan Chang, a lawyer for the automaker, said at the state Capitol after the decision.

“New Jersey does not believe in free enterprise, the bedrock of this nation,” Chang said.

The rule also requires dealers to operate showrooms of at least 1,000 square feet, with room to show at least two cars, plus maintain a service department. Currently that’s not the case for Tesla.

On its blog, the company charged Gov. Christie’s administration “has gone back on its word,” saying it thought it had reached an agreement to delay the rule.

“Tesla should either change its business model to conform with New Jersey law or seek changes to it,” said James Appleton, president of the state’s dealer association.

The New Jersey commission’s vote came on the same day Tesla was to meet in Ohio with officials to find a compromise over the same issues.

Tesla shares slipped 2 percent to $234.02 on Tuesday.