Tesla (TSLA) says that New Jersey Gov. Chris Christie is advancing legislation that will hurt its ability to sell in the state.
Gov. Christie is a proponent of blocking Tesla’s favored direct sales model, and instead wants them to use a third-party dealer.
While Tesla has seen success in blocking similar state proposals elsewhere, Christie is holding fast in favor of car dealerships.
The rule, which deals with the licensing of auto dealers, would require that a person have a franchise agreement with an auto manufacturer to be granted a license. Tesla owns its stores, selling directly to consumers, something that dealer groups in many states have fought, primarily through legislation.
Tesla has been successful in knocking down legislative efforts to block their sales, but the licensing rule change could be made Tuesday by the New Jersey Motor Vehicle Commission at a meeting in Trenton at 2 p.m. EDT, Tesla said in a statement on the company’s Web page.
The already embattled New Jersey governor apparently told TSLA that the proposal would move forward as legislation, but is switching course to cement the rule before any vote.
“Monday we received word that Gov. Christie’s administration has gone back on its word,” Tesla said in a statement.
TSLA stock is down 1.5% in pre-market trading.
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