The company-owned dealerships will be allowed to operate as normal, selling Tesla's electric car models directly to the public, so long as the company doesn't open any more, according to a report in The Wall Street Journal.
"The agreement is a win-win for consumers, for the franchised auto dealers and manufacturers who play such a vital role in New York's economy, and for cutting edge companies like Tesla," said Cuomo in a statement released by his administration.
According to the statement, additional retail outlets opened by Tesla will be "established under a strengthened dealer franchise law."
Tesla is currently in legal battles in various other states which object to Tesla's direct-selling business model. While Texas and Arizona ban Tesla's retail structure, on Friday New Jersey gave Tesla dealerships an additional two weeks to remain open.
Earlier in the month, the New Jersey Motor Vehicle Commission passed a rule change which would prohibit auto manufacturers from direct selling, the line of thinking being that consumers wouldn't benefit from competitive pricing and other protections offered by third-party dealers.
In a blog post earlier in the month, the company defended its business model, writing, "This model is not just a matter of selling more cars and providing optimum consumer choice for Americans, but it is also about educating consumers about the benefits of going electric, which is central to our mission to accelerate the shift to sustainable transportation, a new paradigm in automotive technology."