Indiana is allowing Tesla to keep selling its cars in the state ... for now.
USA Today is reporting that an Indiana state Senate committee held back a controversial proposal Thursday to ban the automaker from selling its electric vehicles in the state due to its current business methods.
Indiana Senator Jim Buck, who's also chairman of the Senate Commerce and Technology Committee, was one of the prominent politicians who supported the bill, but he and State of Indiana House of Representatives' Kevin Mahan agreed to table the issue for now, sending it to a study committee for further evaluation.
USA Today says the proposed ban on Tesla's direct auto sales won't be addressed until at least next year.
"We are trying to make what we are doing here fair to all," Buck told the publication.
Todd Maron, Tesla's general counsel, said the company hopes the time allotted paves the way for the bill to be reconsidered.
So, why would a state try to ban Tesla from selling its cars? Well, the bill contends that the automaker's method of direct vehicle sales — while not using dealerships — shouldn't be allowed. The bill would cause the company's dealer license to expire in 2018, forcing it to transition into a franchise dealer model — like the rest of automakers — or cease selling vehicles in the state altogether. Pretty stiff.
Interestingly enough, Tesla has a showroom at the Fashion Mall at Keystone within the state, but that's seemingly not sufficient enough for the state.
In addition, Buck and his committee are getting the backing from a heavyweight in the auto industry — General Motors. According to USA Today, GM is in favor of supporting a ban on direct auto sales.
Indiana isn't the first state to take issue with Tesla's direct-to-consumer business model, either. New Jersey banned Tesla from selling its cars for nearly a year before Governor Chris Christie signed a bill that reversed that ban last March.
Will Indiana reach a similar resolution or move forward with its proposed ban? As seen in New Jersey, this could drag out.
