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Tesla strikes key sales deal with NY officials

An attendee looking at a battery charger is reflected on a Tesla Motors Inc. Model S electric vehicle.
Tomohiro Ohsui | Bloomberg | Getty Images
An attendee looking at a battery charger is reflected on a Tesla Motors Inc. Model S electric vehicle.

In a potentially big win for Tesla Motors, the carmaker on Friday struck a deal New York Gov. Andrew Cuomo, the New York State Automobile Dealers Association and the Greater New York Automobile Dealers Association to keep existing retail locations open in the state.

The deal is similar to one struck in Ohio, which essentially allows existing retail locations to remain open but limits or restricts additional stores.

New Jersey and Texas have both banned direct auto sales to protect existing auto dealers in their states.

New York Rep. David Buchwald, whose district serves as home for three Tesla facilities, cheered the deal. "I've maintained from the beginning that a compromise was possible to keep this environmentally-innovative company producing jobs in New York state," he said. "I'm proud that we have not made the same mistake New Jersey did."

Read MoreTesla to Texas: How do you like us now?

The deal will allow Tesla to "continue to pursue its mission of catalyzing the market for sustainable transportation," said Diarmuid O'Connell, vice president of corporate and business development.

"Today's agreement reaffirms New York's long-standing commitment to the dealer franchise system,while making sure New York remains a leader in spurring innovative businesses and encouraging zero emissions vehicle sales" Cuomo said, in a statement.

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