Tesla Said To Battle Bill That Could See Direct Sales, OTA Updates Banned In Oklahoma

Tesla Inc TSLA is reaching out to supporters to push against a bill that would prohibit direct sales and close both service centers and showrooms in Oklahoma, electric vehicle news portal Teslarati reported on Tuesday, citing a company letter.

What Happened: An amended bill would also prohibit Tesla from offering over-the-air software updates to vehicles in Oklahoma.

“Last month, we informed you about HB 3994, a detrimental bill proposed in the Oklahoma State Legislature. With your help, we were successful in stopping HB 3994, but unfortunately, most of that same language has been amended onto another bill,” the report noted, citing the letter.

“Senate Bill 512 is new legislation that passed out of committee last week and will now go before the full House of Representatives for a vote.”

Why It Matters: Unlike legacy automakers such as General Motors Co GM and Ford Motor Co F, Elon Musk-led Tesla follows a direct sales and service model. 

Tesla owns the stores instead of having franchisees and customers place the order online; several U.S. states are in opposition to such a sales model. 

Price Action: Tesla stock closed 1.1% higher at $986.9 a share on Tuesday.