Posted on June 18, 2023
In a recent development, a federal court in Louisiana has dismissed a lawsuit filed by Tesla challenging the state's ban on direct to consumer car sales. This follows Tesla's success in overturning a similar ban last month in Delaware, amid the automaker's ongoing efforts to reverse such bans in several states across the U.S.
Tesla filed the lawsuit last year, challenging Louisiana's prohibition on the company selling its electric vehicles (EVs) directly to consumers. Tesla argued that the state's ban was protectionist and anticompetitive. However, the court ruled on Friday that the ban on direct sales is applied uniformly to all manufacturers and found no proof of the Louisiana Legislature harboring any anti-Tesla bias.
"The direct sales ban applies equally to all manufacturers, and Tesla has alleged no facts regarding anti-Tesla animus on the part of the Louisiana Legislature," the court ruled (via Reuters).
Tesla's lawsuit also addressed the alleged efforts by the defendants to hinder vehicle leasing and the operation of repair shops within Louisiana. Tesla claimed that these constraints have adversely affected over 3,000 vehicle owners registered in the state.
This legal challenge is one of many Tesla is facing across the U.S. Similar obstacles exist in states like Connecticut, where Tesla has been fighting for direct-to-consumer sales rights for years. Despite Tesla's significant investments in the Texan economy, including the construction of Giga Texas, the company is still not permitted to sell its vehicles directly to consumers in the state.
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