New Jersey has decided to not allow Tesla to sell cards directly through its outlet stores, Auto Week reports.

New Jersey becomes the third U.S. state, after Arizona and Texas, to implement a rule that would ban Tesla from operating its stores, which are alleged to violate state dealer-franchise laws mandating vehicles sales through third-party dealerships.

The state’s motor-vehicle commission implemented a new rule on March 11 that, in effect, prohibits the company from continuing to sell cars out of their two outlet stores.

Source: Auto Week

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