The deal marks a compromise between the electric car maker and the Ohio Automobile Dealers Association, which had sought to block Tesla from setting up additional direct-sales outlets, which were seen as a threat to a system in which dealerships are run as independently owned franchises.

Tesla will be allowed to operate its Ohio stores in Columbus and Cincinnati and will be permitted to add a third under various conditions.

Diarmuid O’Connell, vice president of business development, said: ‘One could always hope for more, but I think that this gives us a sufficient base from which to grow and to advance electric vehicles in Ohio.’