Updated from 12:40 p.m. to reflect New Jersey has passed the motion to block direct sales in the fourth paragraph.
NEW YORK (TheStreet) -- Tesla Motors' (TSLA) presence in New Jersey could be severely hampered as New Jersey Governor Chris Christie's administration went back on its word in a fight against the New Jersey Coalition of Automotive Retailers (NJ CAR).
In a blog post, Tesla has claimed that it's been working with the Christie administration to defend its presence in the Garden State, as NJ CAR has attacked Tesla's business model. Tesla does not have dealerships which sell cars from auto manufacturers such as General Motors (GM) and Ford (F), but instead has stores placed in malls where consumers can test drive the Model S. Following that, customers can order the car to their exact specifications on Tesla's Web site. Tesla claims that "Governor Christie's administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature."
With the new rule now adopted, it will hurt the company's sales operations in New Jersey, "and jeopardize our existing retail licenses in the state." Tesla currently has two stores in New Jersey, one in Paramus and the other in Short Hills. The company also has a service station in Springfield Township. Tesla claims that New Jersey Motor Vehicle Corp. (NJMVC) and the Christie Administration are thwarting the Legislature to go above and beyond their call of duty to implement the law (Proposal PRN 2013-138) to protect the monopoly car dealerships have on the state.