Pennsylvania compromise allows Tesla to open five retail stores

The Pennsylvania House of Representatives has passed legislation that allows Tesla to sell cars directly to consumers in the state, but limits the company to no more than five retail stores. The state Senate passed the bill last week, and the governor is expected to sign it into law.

The bill is seen as a compromise, as it includes a cap on the number of stores, and is worded so as to apply only to Tesla. John Devlin, president of the Pennsylvania Automotive Association, which represents the state’s dealers, said his organization supports the bill. “Legislators did a good job of giving everyone something,” said Devlin.

The Alliance of Automobile Manufacturers, a trade association representing 12 automakers, also seems to be amenable to the arrangement. “We support the current cap figure, as it is in line with neighboring states,” said Alliance spokesman Dan Gage.

The Pennsylvania plan seems to be similar to recent accommodations in other states. Compromise bills have capped the number of Tesla-owned stores at three in Ohio and five in New York. Proposed legislation in New Jersey would limit Tesla to four stores in that state.

“We’d like to thank the Pennsylvania Automotive Association for working with us to get this legislation passed by a vote count of 197-2,” Tesla said in a statement. “We hope the process in Pennsylvania serves as an example for how productive cooperation can lead to a win for all parties involved, dealers and legislators included.”

 

Sources: Wall Street Journal, Green Car Reports, Automotive News
Image: Jack Amick/Flickr