Deal allows Tesla to sell cars in Ohio

COLUMBUS, Ohio (AP) — Ohio automobile dealers have struck a deal that will allow Tesla Motors to sell its electric cars in the state.

The agreement with the Ohio Automobile Dealers Association was negotiated on Tuesday and approved by a Senate panel.

The bill allows Tesla to keep its existing stores in the Columbus and Cincinnati areas, and allows a third to open in Cleveland, but prohibits the company from opening any other stores.

The bill allows no other automaker to operate manufacturer-owned stores in the state.

Ohio was among states proposing to block Tesla from setting up additional direct-sales galleries on grounds they undercut traditional auto dealerships. Dealers saw Tesla as a threat to a system in which nearly all dealerships are independently owned franchises that are separate from manufacturers.

©2014 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.