Here is a long read, but a
Here is a long read, but a good one elaborating on why the law doesn't make sense:
http://www.techdirt.com/articles/20140311/15270526534/corruption-index-if-state-moves-to-ban-tesla-direct-sales-its-sign-corruption.shtml
Especially chuckle-inducing is the bit at the end about the Horse Association of America's efforts in the early days of the automobile. I don't necessarily agree that Tesla should be above the law and other companies should have to comply (although the unique needs of electric vehicles may be sufficient justification), but I don't think the law should exist at all.