Tesla to keep its Indiana store for now image

Tesla Motors is to keep its license to sell cars directly to customers in the US state of Indiana, as the anti-store bill has been put on hold.

The electric car maker prevailed in one of the many fights with the US auto dealers, and especially with General Motors, over its way of selling cars directly to customers. Tesla was in danger of losing its license in Indiana where it has operated one store in Indianapolis since 2014. State Representative Kevin Mahan has introduced a bill that would “provide that a dealer license issued to a manufacturer expires after 30 months and may not be renewed,” a law that would force the company headed by Elon Musk to sell its models through franchised dealers after the legal time-frame expires. Tesla has publically accused General Motors on several occasions of pushing and lobbing for this bill. However, after a hearing last week, a state Senate committee has postponed the bill by voting to send it to a “summer study” session.

“We look forward to participating in the upcoming summer study process where we will be able to fully air the issues of vehicle sales and consumer choice in an open and public forum,” Tesla said in a statement. This fight between GM and Tesla comes just before the two carmakers are about to launch affordable electric models that would compete on the same price level.

We will continue to work on this issue in Indiana and nationally, and will continue to express our concern anywhere we find market participants are operating under different rules,” GM said. “This issue demonstrates the inequity of different competitors having different rules in the marketplace,” the Detroit-based company added.

Via Bloomberg