Pennsylvania Lawmakers have granted Tesla Motors Co. permission to open new retail stores in the state to sell its electric cars, providing the automaker a victory in its battle to sell vehicles in company-owned stores rather than traditional dealerships.
The Palo Alto, Calif.-based company said in an email that legislation that was approved last week by the Senate was passed by the state House Tuesday, enabling the automaker to add more stores and service centers in Pennsylvania, according to Bloomberg. The bill allows for as many as five stores to be opened in the state, but it still must be signed by Governor Tom Corbett to become law.
Diarmuid O'Connell, vice president for business development at Tesla, said the victory in Pennsylvania was different from the company's previous battles in that it was won through Tesla's cooperation with the industry group Pennsylvania Automotive Association.
Elon Musk, founder of Tesla, has been fighting to avoid selling his cars in traditional dealerships. The possibility of other manufacturers making similar moves to sell their cars independently has been a concern for dealers. Tesla, however, was able to achieve this with help from the Pennsylvania Automotive Assocation, Tech Times reported.
"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," O'Connell said.
The new law is the latest victory for Musk and his company, with the New Jersey Assembly last month approving a bill that lets Tesla sell zero-emission vehicles in the state, Bloomberg reported. New York Governor Andrew Cuomo signing a similar bill into law, and the automaker avoided legislation in Ohio and Missouri that banned it from directly selling cars.
Tesla currently runs a store in King of Prussia in Pennsylvania, as well as service centers in Devon and Norristown. The automaker said on its website that it is looking to open a store in Devon soon.
O'Connell said in a phone interview that while Tesla prefers to not be limited in the amount of Pennsylvania stores it can open, "I regard this as the glass is half full."
