Tesla (TSLA) Cuts Deal To Keep Direct Sale Outlets In NY: Report

Tesla S Model

The Wall Street Journal reports Tesla Motors (TSLA) struck a deal Friday with New York Governor Andrew Cuomo and the state’s car dealers that will allow the automaker to continue selling cars directly to customers at its five direct-to-consumer retail stores in New York state.

Under the agreement, Tesla will maintain its five existing direct-sale operations in the state. Additional Tesla retail locations however, will have to be established under a “strengthened dealer franchise law,” the Cuomo administration said. As a result of the deal, the Journal said elected officials agreed to remove language from the bill that would have closed Tesla’s stores.

Cuomo told the Journal the deal was a “win-win for consumers, for the franchised auto dealers, and manufacturers who play such a vital role in New York’s economy, and for cutting-edge companies like Tesla.”

The New York State settlement comes just days after the automaker struck a similar deal in Ohio.

Tesla shares gained $5.5, or 2.44 percent, to $212.37 in regular trading Friday in New York.

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