Tesla’s Direct Sales Ambition Blocked in Louisiana

Tesla’s mission to overturn Louisiana’s ban on direct car sales suffered a setback when a federal court dismissed the electric car maker’s complaint, reports Reuters. Tesla had taken legal action against Louisiana’s rule that prevented it from selling its vehicles directly to customers, claiming the policy to be protectionist and anti-competitive.

The court’s decision comes as a blow to Tesla, a company that has built its unique sales strategy around direct-to-consumer transactions, either online or through its own stores. This approach skips the traditional dealership model, which most auto manufacturers use.

Tesla’s attempt to contest the ban forms part of its broader strategy to challenge direct sales prohibitions in various states. Yet, according to the ruling, the court found no evidence that the direct sales ban was unfairly targeting Tesla.

It stated that 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.”

This ruling may impact Tesla’s future expansion plans in Louisiana and potentially other states with similar restrictions. However, given the company’s history of challenging such sales prohibitions, it’s unlikely that this setback will halt their efforts.

Haye Kesteloo
Haye Kesteloo

Haye Kesteloo is the Editor in Chief and Founder of EVXL.co, where he covers all electric vehicle-related news, covering brands such as Tesla, Ford, GM, BMW, Nissan and others. He fulfills a similar role at the drone news site DroneXL.co. Haye can be reached at haye @ evxl.co or @hayekesteloo.

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