Written by The Business Journal Staff
(AP) — A bill that would have driven automaker Tesla from doing business in Indiana has been revamped to allow the electric car company to stay.
The Indiana House transportation committee amended and approved the bill Thursday. It grandfathers in Tesla but prohibits other major automakers from direct car sales in the future.
Palo Alto-based Tesla sells cars directly to consumers, cutting out third-party auto dealerships and giving them a competitive advantage.
The bill’s sponsor and committee’s chairman, Republican Ed Soliday, says that without it, foreign automakers, including the Chinese, could sell cars directly without accountability or adequate repair facilities.
Several states already ban direct auto sales.