Louisiana does not allow automakers to sell their electric vehicles directly to consumers, and now Tesla is fighting the state in court to challenge the law.
According to the Wall Street Journal, Tesla filed a lawsuit last week in the U.S. District Court for the Eastern District of Louisiana. Elon Musk’s company is arguing the Louisiana direct car sales law violates constitutional rights, specifically interstate commerce.
Tesla’s lawsuit says it is suing the Louisiana Automobile Dealers Association, various officials from the Louisiana Motor Vehicle Commission and some dealerships in the state, alleging the group worked together to achieve the current laws.
“Louisiana consumers’ freedom is being unduly restricted by protectionist, anticompetitive, and inefficient state regulation and laws,” read the Tesla lawsuit.
Back in 2017, Louisiana passed a law that banned direct car sales to consumers, but instead buy them only from dealers or other franchises.
Tesla challenged Michigan in a similar lawsuit back in 2016, which resulted in a settlement that allowed the EV maker to sell cars to customers in the state.
Musk has been fighting for direct car sales since 2013, when a judge in New York ruled in favor of Tesla, which was under attack by car dealers to ban direct sales.
New York judge just ruled in favor Tesla, dismissing the legal attack by auto dealers to prevent direct sales!
— Elon Musk (@elonmusk) April 11, 2013
The lawsuit also says defendants in Louisiana have also attempted to stop Tesla from leasing cars and operating warranty service centers for the 3,000 Tesla vehicles in the state.
The sales model of Tesla is akin to online shopping, allowing customers to buy their car online and customized to their liking, bypassing any third parties such as dealerships, resulting in the same price for all vehicles sold. Some legacy automakers such as GM and Ford have tried to switch to this online direct sales model for some of their EVs.
