Tesla Allowed to Sell Cars in Ohio, Following N.J. Ban

Updated from 11:12 a.m. to include comment from Tesla.

NEW YORK (TheStreet) -- Following a ban to sell its cars directly to consumers in New Jersey, Tesla Motors (TSLA) is now free to do so in Ohio.

Earlier this month, news broke that Tesla had met with the Ohio Automobile Dealers Association about selling its popular Model S directly to consumers. Following discussions with Ohio auto dealers about Senate Bill 260, which would have banned Tesla from selling directly, Tesla is now free to do so in its two stores in the state, one based in Easton and the other in Cincinnati. The deal between the association and Tesla was approved by a Senate panel, according to the Associated Press.

Diarmuid O'Connell, Tesla's VP of Corporate & Business Development, said the company was happy to reach an agreement in Ohio. "We're pleased with the compromise reached in the Senate Committee to amend SB 260 to allow Ohio residents to continue to purchase electric vehicles directly from Tesla at our two existing stores and one additional location in Ohio," O'Connell said in an emailed statement. "Tesla stores are essential to educating customers about electric vehicle technology and building a mass market for EVs. We look forward to continuing to provide our Ohio customers with the full Tesla experience and to further investing in the state by employing Ohioans both directly at our stores and service centers, and through our Ohio-based suppliers of parts and components."

Not only can Tesla sell directly to consumers in its two existing stores, but it allows for Tesla to open a third store in Cleveland. However the deal prohibits the Palo Alto, Calif.-based company from opening any more stores in the state. As per the agreement, Tesla is the only automaker allowed to operate its own stores in the state.

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