Tesla to appeal changed New Jersey car regulations

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Associated Press

Posted on April 2, 2014 at 2:01 PM

Updated Wednesday, Apr 2 at 2:02 PM

NEWARK, N.J. (AP) — Electric-car company Tesla Motors has filed notice it intends to go to court to appeal New Jersey's 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 says 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 direct-sales models 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.

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