Tesla Legal Challenge Against Louisiana Sales Law Revived

The 5th U.S. Circuit Court of Appeals has revived Tesla's lawsuit against a Louisiana law that prevents automobile manufacturers from selling directly to consumers. This ruling overturns a previous dismissal and acknowledges Tesla's claim of constitutional due process violations, indicating potential bias from the Louisiana Motor Vehicle Commission, which is largely comprised of traditional auto dealers. Tesla's challenge is part of a larger movement across several states to alter laws that restrict direct sales and includes strategies like establishing showrooms on tribal lands. The majority opinion, authored by Judge Jerry Smith, emphasized that the Commission is incentivized to exclude new business models. The case now returns to federal district court for further proceedings, marking a significant step in Tesla's efforts to expand its sales model. Legal representatives for the state commission expressed intentions to appeal the ruling.