Indiana bill won’t stop Tesla from selling direct-to-consumers

A Tesla S with autopilot features. (credit: Ron Amadeo)

Earlier this week, the Indiana legislature added an amendment to a bill that would have made it illegal for manufacturers to sell cars directly to consumers, a practice that electric vehicle company Tesla employs. But on Thursday that amendment was taken out of the bill, all but assuring Tesla's continued operation in Indiana for the foreseeable future.

The direct-to-consumer business model has been the basis of Tesla's operations, but it has rankled other car manufacturers and the dealers they sell through. Dealers, for their part, have fought back in several states like Texas, Arizona, and New Jersey, and over the years they've won legal barriers to keep Tesla from selling cars direct from the manufacturer.

The battle in Indiana was interesting because Tesla was honed in on GM, which recently released an electric vehicle that could be competitive with Tesla's forthcoming Model 3. Tesla accused GM of pushing the bill through the state's legislature in a letter to its customers shared with Ars. However, Tesla could not provide solid proof of GM's involvement.

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