INDIANAPOLIS (WISH) — Indiana lawmakers have amended a bill that would have pulled the plug on Tesla sales across the state.
The amended bill passed out of a House committee Wednesday. The changes allow Tesla to continue selling direct to customers, but similar automakers would be blocked from doing so in the future.
“The loophole will be closed to all new market entrants going forward which was always our goal,” the Automobile Dealers Association said in a statement.
The bill may undergo further changes as it goes up for a vote in the House and Senate.
The bill’s sponsor and committee’s chairman, Republican Ed Soliday, says that without it, foreign automakers, including the Chinese, could sell cars directly without accountability or adequate repair facilities.
Traditional automakers do not sell straight to consumers. They are required to sell through dealers.
A nationwide debate has arisen over the issue because Tesla does not have dealerships.
Indiana’s only Tesla store is located in the Fashion Mall on the north side of Indianapolis.The Associated Press contributed to this report.