Tesla Settles Lawsuit Challenging Louisiana Direct Sales Ban

Tesla on Monday settled a lawsuit against Louisiana and various auto dealerships and trade groups, in which CEO Elon Musk’s electric car company challenged the state’s ban since 2017 on direct vehicle sales to consumers.

According to a dismissal motion filed in New Orleans federal court, Tesla’s claims have been “fully and finally resolved,” with state officials maintaining they were simply doing their jobs and did not violate criminal laws.

Related: Tesla Settled Over Autopilot Crash With Truck Crossing Highway

Tesla sued members of the Louisiana Motor Vehicle Commission, dealerships owned by individual commissioners, and the Louisiana Automobile Dealers Association in August 2022.

It accused motor vehicle commissioners associated with rival dealerships of exploiting their control of the commission by targeting its sales model, which does not use a network of franchised dealers, as an alleged “existential threat.”