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Tesla attempts to repeal Louisiana's ban on direct car sales

Skylar Williams

Aug 30, 2022 10:58

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Tesla Inc. (NASDAQ:TSLA) has filed a lawsuit contesting the state of Louisiana's refusal to let the company sell vehicles directly to consumers, arguing that the state's move is protectionist and anticompetitive.


This case is the most current effort to overturn direct sales bans in some states against the electric vehicle maker, who circumvented traditional car dealerships. Customers in these states must travel to neighboring states in order to purchase Tesla vehicles.


Tesla asserted that Louisiana officials violated state and federal antitrust laws by barring direct sales since 2017 and attempted to restrict leasing and servicing of the company's vehicles in the state.


The case, which was filed on Friday in the U.S. District Court for the Eastern District of Louisiana, alleges that "protectionist, anti-competitive, and ineffective state regulation excessively restricts the freedom of Louisiana consumers."


Tesla alleged that Louisiana dealers, the dealer association, and several Motor Vehicle Commission members engaged in an "illegal conspiracy" to prohibit the firm from conducting business in the state.


Tesla sued Michigan in 2016 over the state's restriction on direct sales and reached a settlement with the state in 2020 allowing Tesla's subsidiary to service vehicles in Michigan.

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