Tesla Motors Inc (TSLA) and Pennsylvania approach five-store compromise

Posted Jun 30, 2014

Tesla Motors Inc (NASDAQ:TSLA) and the Pennsylvania Senate have come to an agreement. Pennsylvania’s Senate decided that Tesla Motors can operate five company-owned stores in the state.

The senate this week unanimously voted for a bill that will allow Tesla’s operations, but it placed a limit on the number of stores at five. According to Automotive News, the bill will now go to the state’s House for approval.

Earlier this month, the trade group the Alliance of Automobile Manufacturers went on record against the lack of limits on Tesla-owned stores in PA. The group was neutral on the issue of whether Tesla Motors could work around the traditional third-party dealership network to sell its electric vehicles. The group said allowing Tesla to own an unlimited number of stores in the state created an unfair advantage for Tesla.

The trade group is on board with the bill as currently drafted because the store limit is similar to that of nearby states like New York and Ohio. Tesla has a store in King of Prussia, Pennsylvania and another one is planned for Devon.

Tesla’s VP of corporate and business development Diarmuid O’Connell said in an e-mail to AutoBlog that the company was pleased with the Pennsylvania’s senate vote. O’Connell said that the state’s bill “serves the interests of Pennsylvania’s consumers while enabling all parties, including lawmakers and auto dealers, to avoid unnecessary and potentially protracted conflict.”

[Source: AutoBlog]