The California-based startup successfully reached a compromise with several dealership organizations in New York, allowing the company to keep its five retail outlets in the state and open four more in the future.
“New York’s franchised auto dealers and manufacturers as well as innovative companies like Tesla are critical to our state’s economy, and this bill ensures that both sides will thrive and be able to grow the market for cutting edge zero emission vehicles,” Cuomo said in a statement.
Dealer lobbyists had initially pushed for an outright ban on direct sales in the state, forcing Tesla to sell its cars elsewhere, however the groups agreed to a compromise after political and public opinion swayed against applying dealer franchise laws in a way that limited competition with a newcomer.
Tesla faced a slightly different battle in New Jersey, where it had operated several sales outlets until state officials declined to renew its retail licenses amid pressure from lobbyists. Some legislators were willing to draft new legislation to formally allow the company to restart direct sales in the state, and the bill has now moved to the state senate for a vote.
The company faces several parallel battles in other states, though the direct-sales model has generally been publicly supported by politicians from both sides of the aisle once the conflict comes to light in each case.
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