Tesla Motors Inc. will no longer be selling its electric vehicles in New Jersey after lawmakers made it illegal to sell cars in the state without a dealer.
On Tuesday, the New Jersey Motor Vehicle Commission passed a law mandating that auto manufacturers have franchise agreements with auto retailers in order to receive a license to sell cars in the state, the Wall Street Journal reported.
However, Tesla, which makes the all-electric luxury Model S sedan that sells for between $60,000 and $90,000, owns its stores and sells its vehicles directly to customers.
"This is at the very least disappointing, if not outright outrageous what's going on with our business in N.J. right now," said Diarmuid O'Connell, the vice president of business development at California-headquartered Tesla.
State officials said Tesla was aware of the rule change from the beginning and submitted comments on it when the proposal was under public review.
"Tesla is making a big play today in trying to drag political and legal intrigue into this battle when none exists," said Jim Appleton, president of the New Jersey Coalition of Automotive Retailers.
Tesla will no longer be selling vehicles in New Jersey as of April 1.