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Senate Kills Bill To Unplug Tesla Showrooms In Indiana
Updated February 26, 2016 7:32 AM
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(STATE HOUSE) - The Senate has pulled the plug on a bill which would have shut down the Tesla auto showroom in Indianapolis.

Instead of franchising dealerships, Tesla sells to customers directly. The Senate had proposed banning that practice. Senate Commerce Chairman Jim Buck (R-Kokomo) says he's been bombarded with angry calls from Tesla owners. He's killed the bill in favor of the House's original call for a study committee.

Buck charges the bill has been mischaracterized as an attempt to prop up General Motors against Tesla. He says legislators aren't out to stifle innovation, but need to be aware of market disruptions that could cost jobs. But he says the negative perception of the bill is too much to overcome.

Tesla's competitors don't have the direct-to-consumer option because they already have franchised dealerships. Current law requires carmakers to choose one or the other.

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