Lawsuit argues Louisiana blocks the freedom of consumers to purchase electric vehicles.

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Tesla Sues the Louisiana Automobile Dealers Association
Lawsuit argues Louisiana blocks the freedom of consumers to purchase electric vehicles.

— The state of Louisiana doesn't want Tesla to sell electric vehicles directly to Louisiana consumers, something that doesn't sit well with the automaker.

In a lawsuit against the Louisiana Automobile Dealers Association and others, Tesla argues Louisiana is guilty of violating antitrust laws which take away the freedom of Louisiana consumers.

According to Tesla, Louisiana car dealers and the state dealer association have conspired to block Tesla from selling direct to Louisiana consumers.

Consumers are allegedly forced to deal with middlemen (dealers) that make a profit from selling vehicles.

On the other hand, Tesla has allegedly removed the middleman by the manufacturer selling direct to consumers.

The lawsuit alleges "inefficient state regulation" restricts the freedom of Louisiana consumers by blocking direct sales which allegedly provide residents more choices.

In addition to the Louisiana Automobile Dealers Association, Tesla's lawsuit accuses several officials on the Louisiana Motor Vehicle Commission of wrongdoing.

Tesla has been down this legal road before, especially in 2016 when the automaker sued the state of Michigan for blocking direct sales to consumers.

When the lawsuit was filed in 2016, Michigan consumers had to leave the state to purchase a Tesla electric vehicle and had to leave the state to have their vehicle serviced by Tesla.

In 2020 an agreement was reached that allows any Michigan consumer to buy a Tesla and have it serviced in Michigan, as long as certain conditions are followed.

In 2017, a Missouri Court of Appeals three-judge panel ruled Tesla could sell direct to Missouri consumers, in opposition to the wishes of the Missouri Automobile Dealers Association.

The Tesla lawsuit was filed in the U.S. District Court for the Eastern District of Louisiana: Tesla Inc., et al., v. Louisiana Automobile Dealers Association, et al.


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