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Ohio Senate OKs deal allowing Tesla to sell cars

The Ohio Senate has passed a bill that would let electric car maker Tesla Motors operate three dealerships in the state.

Tesla Model S.

COLUMBUS, Ohio (AP) - The Ohio Senate has passed a bill that would let electric car maker Tesla Motors operate three dealerships in the state.

Its passage Tuesday comes after Ohio auto dealers struck a compromise to let California-based Tesla sell its electric cars at existing stores in Columbus and Cincinnati. The company also could open a third store, planned for the Cleveland area, but no others.

No other automaker could operate manufacturer-owned stores in the state.

Ohio was among states proposing to block Tesla from setting up additional direct-sales galleries on the grounds that they undercut traditional auto dealerships.

Ohio auto dealers saw Tesla as a threat to a system in which nearly all dealerships are independently owned franchises that are separate from manufacturers.

The House must still consider the proposal.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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