Tesla Motors has reached a deal to continue selling its vehicles in New York state, according to CNN.

The New York Automobile Dealers Association reached a compromise with the electric vehicle maker in its battle over Tesla's five stores in N.Y. and other nearby locations.

Dealers have been pushing hard to have the stores shut down, claiming that they violate dealership laws that specifically prohibit selling vehicles directly to customers.

Other automakers rely on independently-owned dealers to sell vehicles.

The compromise means that Tesla will be able to operate its current stores, but new ones will only be "allowed" through dealerships, according to CNN.

Tesla said it is "happy with the agreement," according to CNN. Many experts feel the compromise means Tesla is planning on opening dealerships sometime in the near future in N.Y.

The Model S automaker has publicly stated on multiple occasions that it needs direct sales to customers so its own sales people can explain the benefits of owning an electric car.

If it had to use dealers, the automaker feels they would likely neglect the Model S, in favor of cheaper, gas powered vehicles.

Tesla sells its Model S for a starting price of $69,000. The automaker is hoping to introduce a cheaper EV by 2017.

By 2020, it hopes to sell 500,000 vehicles a year, which would be a drastic increase from the 35,000 it expects to sell this year.

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