Tesla's Suit Against Louisiana Sales Ban Revived

A divided federal appeals court has revived Tesla's lawsuit challenging Louisiana's ban on direct vehicle sales. In a 2-1 decision, the 5th U.S. Circuit Court of Appeals reversed the dismissal of Tesla's due process claim and vacated the dismissal of its antitrust claim, while upholding the dismissal of its equal protection claim. Tesla alleges that the Louisiana Motor Vehicle Commission and the Louisiana Automobile Dealers Association have colluded to drive it out of the state by exploiting their control over the commission. The appeals court cited plausible bias, including emails from the commission's executive director reassuring competitors. This ruling allows Tesla to further contest the legality of Louisiana's sales restrictions in federal court, and the case now returns to the U.S. District Court in New Orleans for further proceedings.