The "End Tesla Exception Act" seeks to repeal the provision that allowed Tesla and other zero-emission vehicle manufacturers to sell their vehicles directly to consumers in New Jersey. Specifically, it repeals section 6 of P.L.2015, c.24 (C.56:10-27.1), which provided this exception, thereby mandating that all motor vehicle sales must occur through franchised dealerships. This change aims to align the sales practices of electric vehicle manufacturers with those of traditional vehicle dealers, ensuring that all vehicle transactions in the state adhere to the same regulatory framework.

In addition to the repeal, the bill introduces new legal language that clarifies the definitions and roles of motor vehicle franchisors and franchisees, including stipulations regarding vehicle allocation and performance evaluations based on geographic territories. It also establishes that any agreements or terms that violate existing laws regarding motor vehicle franchises are prohibited. Furthermore, the bill imposes new restrictions on franchisors, such as prohibiting them from owning or operating retail facilities for servicing vehicles unless they comply with specific regulations. The legislation aims to create a more equitable environment for all vehicle dealers and manufacturers operating in New Jersey and is set to take effect immediately upon passage.

Statutes affected:
Introduced: 56:10-7.4, 56:10-26, 56:10-27, 56:10-28, 56:10-27.1