Tesla Motors' fate in New Jersey lies in the hands of Gov. Chris Christie's signature to lift the direct sales ban.
Tesla will have to wait for up to 45 days until Christie decides whether to sign the bill, which was passed by the state Senate of New Jersey, or to continue banning Tesla's Model S sales.
New Jersey's Motor Vehicle Commission decided to ban Tesla from directly selling its cars to consumers in April 2014, according to Fortune.
On Monday, the bill was passed by the state Senate with a 30 to two vote in favor of Tesla. Also known as S2098/A3216, the bill gives the green light for zero-emissions vehicle manufacturers such as Tesla to directly sell their cars to interested buyers in New Jersey at up to four locations.
Senators Anthony R. Bucco and Joe Pennachio voted against the bill.
Currently, Tesla has three branches in New Jersey. Customers interested can ask questions about its Model S vehicle and even test drive it. Once Christie signs the bill, customers will be able to directly purchase it from the Palo Alto-based company.
However, car manufacturers will be required to run at least one retail facility to service vehicles in the state. Tesla has one stationed at Paramus in New Jersey.
Not all are thrilled with Tesla's potential return to the state's car market, NJ reported.
"The love affair with Tesla has got everybody gooey, but this is special legislation to accommodate one Silicon Valley startup," said New Jersey Coalition of Automotive Retailers president Jim Appleton.
Appleton said that direct sales of Tesla's cars to consumers will generate a problem in terms of competition.