A Senate committee Thursday backed away from legislative language that would have required electric-car manufacturer Tesla to sell through the traditional dealership model.
The electric car manufacturer Tesla does not use dealerships. It sells directly to customers.
A bill that passed the House created a legislative study committee to examine Tesla's unique situation.
A Senate committee then proposed striking the study and moving right to barring Tesla from direct sales beginning in 2018.
Automobile Dealers Association of Indiana's Marty Murphy says that ban isn't about dealerships' opposition to Tesla.
"It's a good product; they like the product. They just want them to sell it the same way they do," says Murphy.
But after outcry over the proposed ban, the Senate committee returned to the original aim of the bill - to create a summer study committee. Committee chair Jim Buck, R-Kokomo, says the Senate GOP caucus discussed the issue before reversing course.
"I hope all parties can convey that to the world because I've heard from the world," says Buck.
The committee then unanimously advanced the bill to the Senate floor.