Tesla Appealing New Jersey Car Regulations

By Associated Press
|  Wednesday, Apr 2, 2014  |  Updated 1:31 PM PDT
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Tesla Appealing New Jersey Car Regulations

Bryan Mitchell/Getty Images

DETROIT - JANUARY 12: Elon Musk, (C) Chairman, Product Architect and CEO, Tesla Motors, talks about the Model S electric vehicle during the press preview for the world automotive press at North American International Auto Show in Cobo Center January 12, 2010 in Detroit, Michigan. The 2010 North American International Auto Show (NAIAS) opens to the public January 16th. (Photo by Bryan Mitchell/Getty Images)

Electric-car company Tesla Motors has filed notice it intends to go to court to appeal New Jersey's ruling that would stop it from selling its vehicles in the state within two weeks.

The notice was filed last week to the state appellate division.

Palo Alto, Calif.-based Tesla says it was unfairly targeted last month when the state Motor Vehicle Commission amended its regulations.

The regulations require new-car dealers to have franchise agreements before they can be licensed. That prohibits companies from using direct-sales models as Tesla does.

Tesla says pressure from a state auto dealers' association prompted the Motor Vehicle Commission's recent action.

The head of the association says Tesla must play by the same rules as other dealers.

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