Tesla can continue direct sales of vehicles in Indiana

Tesla can continue to sell its vehicles directly to customers in Indiana after the senate panel yesterday voted not to ban direct sales. The Commerce and Technology Committee voted against the amendment restricting direct sales, and sent the bill  for further study.

A ban on direct sales stands squarely opposed to the conventional free market philosophies of the Republican lawmakers who dominate the Legislature. Under  the US free market philosophy, all companies, irrespective of size, are expected to compete with each other under the same rules and conditions.

According to the current law, automakers will be able to sell their vehicles directly to customers. Tesla has been operating a store in Indianapolis since two years, through which it can sell its electric vehicles in Indiana.

However, major traditional automakers, including Ford Motor Co. and General Motors Company GM, which sell their vehicles through franchised dealerships have issues with the law. General Motors' dealerships support the ban on direct sales and find direct sales unfair for automakers who sell vehicles through dealerships.

Tesla, however thinks, that GM supported the amendment to avoid competition, with both companies set to launch low-priced, long-range electric vehicles by next year.

According to commentators, one reason the bill was sent away for further study was due to the response that the bill's sponsor and another legislator said they received.

Jim Buck (R, Kokomo) said, he had been the target of ''incivility'' from Tesla enthusiasts over the past week, when the proposed legislation had made national headlines.

Republican Kevin Mahan, whose district included Hartford City, had authored the bill, and he agreed with Buck that the bill should go to the study committee, which meant that it would not be considered again until next year at the earliest.

''We look forward to participating in the upcoming summer study process where we will be able to fully air the issues of vehicle sales and consumer choice in an open and public forum'' Tesla general counsel Todd Maron said in a statement.