Tesla (TSLA) will end all electric car sales in New Jersey starting April 1, after it failed to head off a state regulatory proposal making it illegal for it to sell vehicles to consumers without a dealer.
The New Jersey Motor Vehicle Commission approved a rule change today that requires auto retailers to have a franchise agreement with an auto manufacturer to be granted a license to sell cars in the state, joining Arizona and Texas by insisting TSLA follow the traditional formula of selling vehicles through licensed dealer franchises.
TSLA's VP of business development said today during a conference call that Gov. Chris Christie's administration "abrogated" an agreement to hold off action on the proposal.
TSLA fell 1.8% during regular trading, mostly in the final two hours; shares -0.4% AH.