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Tesla appeals changed New Jersey car regulations

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The Tesla Model S (photo courtesy of Tesla Motors ) The Tesla Model S (photo courtesy of Tesla Motors )

TRENTON, N.J. (AP) — An extension granted by New Jersey's Motor Vehicle Commission means Tesla will be able to sells its electric cars in the state for at least two more weeks.

An MVC spokeswoman said Friday that all new-car dealers in the state have been sent a letter telling them they'll have until April 15 to comply with new licensing regulations. The original deadline was April 1.

This month, the MVC announced the adoption of new regulations that require car dealers to have a franchise agreement in order to receive a state license. That effectively prohibits companies from using a direct sales model as Tesla is doing.

New-car dealer licenses have to be renewed by April 1 each year, according to Jim Appleton, president of the New Jersey Coalition of Automotive Retailers, an industry group. The new regulations required additional paperwork from dealers, which prompted the extension, Appleton said.

Tesla currently has two retail locations in New Jersey and has planned to expand its operations in the state. The company declined to comment Friday night.

This week, Tesla reached an agreement with auto dealers in Ohio that will allow the company to sell its cars at three locations in the state.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed

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