On Tuesday, the New Jersey Motor Vehicle Commission (NJMVC) voted unanimously to impose new rules that would prohibit Tesla, as a manufacturer, from selling directly to consumers. Instead, the commission said that Tesla would have to sell its cars through a franchised dealer—a situation that the electric car maker has repeatedly rejected.
New Jersey is the third state to impose similar restrictions on Tesla sales. Arizona and Texas have both relied on preexisting laws that protected third-party car dealers to keep Tesla stores out of their states. The reasoning: to protect the sunk costs that franchises have put into their dealerships and to promote competition among dealers.