Tesla Claims GM Is Blocking Its Sales in Indiana

Tesla Motors Inc. says General Motors Co. is backing legislation that would cancel the electric carmaker’s ability to sell cars directly to buyers in Indiana, Bloomberg News reports.

Tesla has been licensed for two years to sell cars directly to buyers in the state through its store in Indianapolis. But a bill introduced by state Rep. Kevin Mahan would cancel the license after 30 months and require Tesla to sell through conventional franchised dealers.

The Wall Street Journal reports that essentially the same bill has been introduced in the Indiana Senate by Sen. Luke Henley.

Tesla claims GM wrote the bill, which is specific to EV makers, for Mahan. GM tells Bloomberg it offered “input” but says Mahan was responsible for the proposal’s language. GM also testified in favor of the measure last month during a hearing of the Indiana House Roads and Transport Committee.

Franchise laws that define today’s dealer system were put in place decades ago to prevent carmakers from competing with their own dealers by selling cars direct. Tesla has argued that such laws don’t apply in its case because the company has no dealers. The company has had mixed results in its state-by-state battle over the question.