Tesla Motors has until April 15 to continue selling its cars through company-owned stores in New Jersey. After then, its stores will be used as galleries where shoppers can view Tesla’s Model S but cannot purchase one or even inquire about pricing. The New Jersey Motor Vehicle Commission justified its decision to prevent Tesla from selling directly to the public by citing a law from the 1970s that prohibits direct sale from company to consumer. CEO Elon Musk wants the law amended because he believes dealerships are ill equipped to properly sell electric vehicles. Tesla is no ordinary company — New Jersey must not stifle its growth by succumbing to the demands of the monied dealership lobby.

The law constraining Tesla was enacted to protect dealerships — and the powerful people who own them — in their dealings with the car companies they work on behalf of. The law prevented auto companies from pressuring franchises into selling the dealerships back at a heavily discounted price. Musk rightly points out that this protection only benefits established players and hurts newer entrants into the market.

Tesla prefers to sell its revolutionary cars directly to customers because the dealership experience is catered toward the sale of traditional, combustion engine vehicles. Musk contends that dealerships prefer to sell well-known nameplates with proven reliability — a mentality that has led to the demise of small, innovative companies like Tucker and DeLorean. Dealerships gain most of their profit from servicing conventional cars, even when unnecessary. Because the Model S requires significantly less maintenance than its gasoline counterpart, Musk fears that dealerships that carry traditional cars and Teslas will push the traditional choice in fear of hurting profit margins.

Worse still, Musk claims that New Jersey Gov. Chris Christie reneged on a promise to take the 1970s law to the state legislature to be amended. Soon after, Christie allegedly cut a deal with the auto dealer lobby. President of the New Jersey Coalition of Automobile Retailers Jim Appleton denied any such deal and commented that the decision was not made because of Tesla’s involvement, but rather the obligation to adhere to pre-existing laws.

When the New Jersey law protecting dealerships against auto companies was created decades ago, the existence of a viable electric car manufacturer seemed unlikely. Though the law may have protected consumers and dealerships in the past, it is outdated and detrimental to new carmakers and should be revised. By committing to the law that protects big dealerships, the New Jersey legislature is yielding to the power of money. The legislature passed the 1970s bill to protect the rights of the smaller, more vulnerable party — it must heed its precedent and extend the same treatment to Tesla. Outdated rationale should not punish forward thinking.

A version of this article appeared in the Thursday, April 3 print edition. Adam Fazilbegu is a staff columnist. Adam’s Angle is published every Thursday. Email him at [email protected].