TSLA350.660-12.1999%
GM87.015-0.915%
F13.935-0.475%
RIVN16.770-0.2%
CYD38.545-1.335%
HMC32.605-0.76%
TM193.885-3.465%
CVNA71.5201.615%
PAG218.3401.47%
LAD370.440-0.29%
AN196.425-3.065%
GPI259.910-1.94%
ABG212.270-2.54%
SAH75.550-1.9%
TSLA350.660-12.1999%
GM87.015-0.915%
F13.935-0.475%
RIVN16.770-0.2%
CYD38.545-1.335%
HMC32.605-0.76%
TM193.885-3.465%
CVNA71.5201.615%
PAG218.3401.47%
LAD370.440-0.29%
AN196.425-3.065%
GPI259.910-1.94%
ABG212.270-2.54%
SAH75.550-1.9%
TSLA350.660-12.1999%
GM87.015-0.915%
F13.935-0.475%
RIVN16.770-0.2%
CYD38.545-1.335%
HMC32.605-0.76%
TM193.885-3.465%
CVNA71.5201.615%
PAG218.3401.47%
LAD370.440-0.29%
AN196.425-3.065%
GPI259.910-1.94%
ABG212.270-2.54%
SAH75.550-1.9%

Tesla settles Louisiana direct sales lawsuit

Tesla

Tesla settled a lawsuit on Monday against the state of Louisiana and several auto dealerships and trade groups. The electric vehicle company challenged the state’s 2017 ban on direct sales of vehicles to consumers. A dismissal motion filed in the New Orleans federal court confirmed that Tesla’s claims had been “fully and finally” resolved.

Tesla initiated the lawsuit in August 2022 against the Louisiana Motor Vehicle Commission, dealerships owned by sitting commissioners and the Louisiana Automobile Dealers Association (LADA). The carmaker alleged that commissioners with ties to competing dealerships abused their regulatory power to block Tesla’s direct-to-consumer sales model, suppress competition and restrict its ability to enter the market.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

Here’s why it matters:

This case underscores the ongoing tension between traditional franchised dealership networks and direct-to-consumer sales models, particularly as electric vehicle makers like Tesla continue to challenge long-established state franchise laws. The resolution of Tesla’s lawsuit could impact how automakers, including emerging EV startups and legacy brands, approach sales, service and leasing strategies in restrictive markets. For industry stakeholders, the outcome could influence future state-level legal challenges and reshape retail automotive dynamics nationwide.

Key takeaways:

  • Tesla settles long-running legal battle
    The company settled its 2022 lawsuit challenging Louisiana’s 2017 ban on direct vehicle sales, ending its legal standoff with the state and dealership groups.
  • Allegations of biased regulation
    Tesla claimed that commissioners tied to rival dealerships weaponized their regulatory power to suppress its direct-sales model, service operations and block them from entering the Louisiana market.
  • Higher courts gave Tesla momentum
    In August 2024, a federal appeals court revived Tesla’s due process and antitrust claims.
  • Supreme Court declined to block lower court ruling
    The U.S. Supreme Court rejected a petition from 18 motor vehicle commissioners, effectively upholding the appellate decision in Tesla’s favor.
  • Service and leasing restrictions also contested
    Beyond retail sales, Tesla challenged Louisiana’s limits on its ability to lease and service vehicles in the state, which are key components of its customer experience model.
Read More
More from Articles
U.S.-Canada trade talks collapse as auto tariff differences widen

U.S.-Canada trade talks collapse as auto tariff differences widen

- August 24, 2026
On the Dash: U.S.-Canada trade talks collapsed after negotiators failed to reconcile differences between the terms discussed and the language in the proposed agreement. Canada pushed for tariff relief on...
GM, Unifor reach tentative agreements covering 4,600 Canadian auto workers

GM, Unifor reach tentative agreements covering 4,600 Canadian auto workers

- August 24, 2026
On the Dash: GM’s tentative agreements provide greater clarity on labor costs and job security across its Canadian manufacturing operations. The separate CAMI agreement keeps the future of the idled...
Volkswagen workers slam board's communication as 50,000 more job cuts loom

Volkswagen workers slam board’s communication as 50,000 more job cuts loom

- August 24, 2026
On the Dash: Workers call board's communication "disastrous," citing an internal survey showing fear and uncertainty Four German plants face competitive capacity concerns, though no closure decision has been made...

Hyundai resumes wage talks after 1st full strike in a decade

- August 24, 2026
On the Dash: Hyundai and its union resumed wage talks Monday after Friday's first full strike in a decade A Tuesday walkout remains possible depending on how negotiations go Prior...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.