Tesla to battle N.J. for direct sales

Tesla Motors has “probably several bases to sue” over a New Jersey commission ruling last week that bars it from selling vehicles directly to the public in the state, a Tesla vice president says.

Tesla is “studying what our options are” to challenge the Motor Vehicle Commission, says Diarmuid O’Connell, head of business development, in an interview.

Tesla had two showrooms for selling its electric luxury cars, but the commission ruled that automakers must sell through independent franchised dealers.

CEO Elon Musk shot back, saying in a blog post that Gov. Chris Christie’s administration had made a backroom deal with the dealers.

New Jersey is not the only state where Tesla is fighting for a direct-sales model.

In New York, where Tesla has five showrooms and four service centers, a bill is pending to stop Tesla.

Ohio is another battleground, according to O’Connell. But “we are committed to sustaining growth there.”

Tesla’s crusade to cut out the middlemen when it comes to selling cars is critical, he says. “We wouldn’t be arguing and fighting ... if we didn’t feel it was direct to our mission.”