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Tesla deal keeps Ohio stores open following threat of a state ban

Tesla deal keeps Ohio stores open following threat of a state ban

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Amid a growing threat of US states prohibiting automaker Tesla from selling its electric vehicles directly to consumers, the company's made a deal in Ohio to keep its existing company-owned stores open there, as well as follow through with plans to open a third. The agreement, which limits Tesla from opening additional locations, was brokered yesterday and passed a Senate panel, reports the Associated Press. The California-based automaker was targeted by the state's dealer association, which wanted to block the company from selling directly to consumers instead of through franchised auto dealerships. Local dealer associations have argued that Tesla's business model cuts dealer business, and threatens consumer protection laws.

The Ohio deal comes just two weeks after Tesla was outright banned from selling vehicles in the state of New Jersey, part of legislation that goes into effect early next week. New Jersey will join Texas, Arizona, and Virginia which already have similar protection laws in place. New York could be next, reports The Wall Street Journal, where the company currently has five stores, giving it one of the company's largest footprints outside of California.

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