Tesla Motors Inc (TSLA) makes a deal to keep dealerships in NY
Tesla Motors Inc (NASDAQ:TSLA) will be allowed to keep its dealerships in the state of New York as part of an agreement made between the electric vehicle company and New York Gov. Andrew Cuomo.
Tesla Motors will be able to keep its five retail stores as long as it does not open anymore. Any new retail store store would have to abide by a “strengthened dealer franchise law.” New York lawmakers that were previously trying to block Tesla’s current and future retail stores will stop their efforts. This is a deal that is similar that Tesla Motors made with Ohio earlier this week.
Rather than using traditional dealerships, Tesla Motors uses retail stores and service centers. This practice has been disapproved in several states. Tesla Motors is banned from selling its vehicles in some states as a result. Even though, Tesla Motors is blocked from opening new stores in New York, the company will be able to continue selling its vehicles to consumers.
[Source: WSJ]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry