The Palo Alto, California-based company markets its vehicles directly to consumers, and Tesla CEO Elon Musk protested the New Jersey regulations last year. He said the company chose not to sell through franchises because most of their revenue comes from gasoline-powered cars leaving little incentive to sell electric vehicles. Tesla executive Diarmuid O'Connell said in a statement the company was pleased Christie enacted the law and the firm is "open for business."
The legislation also requires companies selling cars directly to consumers to maintain a service facility and to report sales figures to the state. Christie promised last year to sign legislation letting companies like Tesla sell directly in the state. On Wednesday, he took credit for fulfilling the promise.
"We're pleased that manufacturers like Tesla will now have the opportunity to establish direct sales operations for consumers in a manner lawfully in New Jersey," Christie said in a statement.
Democrats, who control the Legislature and sent the bill to Christie's desk on Monday, praised the development. Democratic Assemblyman Lou Greenwald called the new law a "win-win" for New Jersey residents.
The AP contributed to this report.