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Missouri House leader not fond of Tesla limits

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May 12, 2014 09:42 PM EST | AP


JEFFERSON CITY, Mo. (AP) — The Missouri House majority leader has no plans to move forward with a bill that could prohibit electric carmaker Tesla Motors from selling vehicles directly to consumers.

Republican Majority Leader John Diehl said Monday that many of his House colleagues have concerns about the bill.

A provision added to a House bill last week by the Senate would bar auto manufacturers from circumventing car dealerships by selling directly to buyers. California-based Tesla Motors says the Missouri bill would prohibit the way it does business.

The wording has been supported by the Missouri Automobile Dealers Association. It says the franchise requirement protects consumers and promotes competition.

But Diehl says some lawmakers are concerned it would limit the free market and result in unintended consequences.