Tesla retail stores to remain in New York State

New York Governor Andrew Cuomo has agreed to allow electric carmaker Tesla to hang on to the company’s five company-owned stores in the Empire State, ending a row between the manufacturer, legislative leaders and other New York auto dealers.

The agreement requires Tesla to adhere to a so-called strengthened dealer franchise law should it pursue the opening of any additional locations. But in exchange for doing so, the electric carmaker gets to hang onto its five existing stores.

Governor Cuomo praised the deal, calling the agreement 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” in a statement cited by the Journal.

The store location deal resembles a similar agreement the carmaker reached in Ohio last week, where it will now be allowed to continue operating two company-owned retail facilities and open one more. Like New York, Ohio’s deal required state legislative approval.

A number of similar battles remain elsewhere, including New Jersey, where state regulators implemented a rule this month that would force the company to close its two retail stores in the state. [WSJ] — Julie Strickland