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Tesla Withstands GM-Backed Effort to Ban Direct Sales in Indiana

  • State Senate panel sidelines measure requiring dealerships
  • GM vows to fight `different rules' in Indiana and nationally
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The Entire History of Tesla in Two Minutes

Tesla Motors Inc. prevailed Thursday in Indiana, where lawmakers sidelined a bill that would have kicked the company out of the state unless it establishes dealerships.

Tesla, led by Chief Executive Officer Elon Musk, is licensed to sell its electric cars directly to consumers in Indiana and has operated one store in Indianapolis for two years. State Representative Kevin Mahan introduced a bill, which General Motors Co. lobbying helped to create, that would have required Tesla to establish franchised dealers. After a hearing Thursday, a state Senate committee voted to send the bill to a “summer study” session -- in essence, tabling it.