Updated from 9:03 a.m. to include analysts thoughts in the seventh paragraph.
In a report first seen in The Columbus Dispatch, Tesla and the Ohio Automobile Dealers Association met yesterday regarding whether Tesla's business model of having company owned stores as opposed to traditional dealerships, should be banned in the state of Ohio. Currently, Tesla is banned from selling directly to consumers in Texas and Arizona, and as of April 1, New Jersey.
Senate Bill 260 is currently up for debate in the Ohio Senate, which states that an auto manufacturer cannot own a dealership outright. The bill was introduced in December, as dealers have become concerned about Tesla's presence in the state. Palo Alto, Calif.-based Tesla currently has two stores in the state of Ohio, one in Easton and another in Cincinnati. The legislation, as it currently stands, would prevent Tesla from opening any more stores.
Tesla could not be immediately be reached for comment for this story, but company spokeswoman Liz Jarvis-Shean did say the company would have more to say on the New Jersey ban in the coming days.
Shares of the electric automaker were higher in Wednesday trading, gaining 2.8% to $2340.86.
The company held a conference call yesterday to discuss the pending ban, which was later imposed. On the call, Tesla said it's sold "several hundred cars" in New Jersey, but declined to discuss the exact amount. Tesla's Vice President of Corporate and Business Development Diarmuid O'Connel said the decision would be "disappointing, if not downright outrageous." If the issue passes, Tesla would have to shut down its operations in New Jersey, O'Connel noted, calling it a "pretty black-and-white issue." It's likely that if the legislation passes in Ohio, it would have a similar affect.