NEW YORK (TheStreet) -- Tesla Motors (TSLA) received some good news from the Pennsylvania General Assembly which passed legislation allowing the electric vehicle maker to expand operations in the state.
The Pennsylvania legislation allows the company to operate five dealerships in the state, and while the company was hoping for an uncapped number of possible dealerships, it takes the ruling as a "glass is half full" situation, said Tesla VP of business development Diarmuid O'Connell in an interview with Bloomberg.
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Tesla has been facing legal battles in states across the country due to its business model that bypasses traditional franchised car dealerships and sells vehicles directly to customers.
The assembly passed the legislation with a 197-2 vote, which awaits Governor Tom Corbett signature.
Tesla shares are down -0.5% to $228.24 today.
TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins."