Committee Carves Out Tesla From Direct Sales Ban

Feb 2, 2017

A House committee changed legislation that bans direct sales by auto manufacturers to essentially grandfather in electric car maker Tesla.

Electric car manufacturer Tesla does not use dealerships, it sells directly to customers. And so the company – and its customers – objected to the bill that would have barred them from doing so within the next few years.

Proponents of that bill say it’s about consumer protection and ensuring balance in the marketplace. Still, bill author Rep. Ed Soliday (R-Valparaiso) drafted a compromise, an amendment that would allow Tesla, specifically, to continue selling in the state.

“But at the same time limit the ability to enter that market without demonstrating that a new manufacturer can actually perform at a standard that ensures safety for our consumers,” Soliday says.

The House Roads Committee adopted Soliday’s change without objection before sending the legislation to the House floor.

The Auto Dealers Association of Indiana, one of the bill’s primary supporters, applaud the change.