NY bill could force Tesla's exit

By IVCPOST Staff Reporter

Jun 26, 2013 09:24 AM EDT

Tesla Motors Inc., Elon Musk's electric car manufacturer, stated that the New York's Assembly has set asie a bill that could potentially shut down its New York business.

The lawmakers and the lower chamber of New York's Assembly failed to make a decision as it adjourned its session late yesterday. The legislators in the Assembly will not be able to reconvene for the processing of the decision until January.

The bill's introduction to the Assembly would halt car manufacturers to market their products directly to consumers. Tesla performs the exact transaction mode as stated in the bill. The bill also stipulates that new vehicles bought outside of New York will not be allowed registration.

Telsa, based in Palo Alto, California, said that this direct sales ban on automobiles would have forced the company to move its operations out of state.

Diarmuid O'Connell, Tesla's veep, said that "Tesla's goal has been to catalyze the market for electric vehicles and selling through intermediaries at this stage of the company will not work."

"It forestalls progress and defeats innovation," he added.

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