The car maker had been barred from selling cars in New Jersey for the past year by a Motor Vehicle Commission rule.
"I said last year that if the Legislature changed the law, I would sign new legislation put on my desk and that is exactly what I'm doing today," Christie said in a statement. "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."
The law rolls back regulations put in place last April by the Motor Vehicle Commission that required new car dealers to have a franchise agreement in order to sell new cars in the state.
Under the amended law, Tesla will have to maintain a servicing facility in the state and report annually to the Division of Taxation the number of vehicles sold.
The Senate had approved the measure Tuesday in a 30-2 vote, and the Assembly passed it last year.
(c)2015 The Record (Hackensack, N.J.)