The US Department of Justice (DOJ) this week supported Tesla’s argument in a district court appeal in a case with the state of Louisiana over its rules banning direct sales of motor vehicles.
Tesla filed a lawsuit last year against Louisiana auto dealer groups in the state seeking to overturn the state’s ban on direct auto sales without dealers. U.S. District Judge Sarah Vance ruled against Tesla in June after the automaker filed suit against the Louisiana Automobile Dealers Association (LADA) and the Louisiana Motor Vehicle Commission (LMVC), as well as board members and other dealers.
According to a Portal report, Tesla immediately appealed the decision, and on Thursday a DOJ filing reiterated a recent argument made by the automaker that Judge Vance misinterpreted antitrust law in dismissing the case. In the lawsuit, the DOJ reiterated a Tesla filing from last week, arguing that Vance improperly asked the automaker to show Louisiana dealer groups that it wanted to stifle competition.
Justice Department lawyers said in the filing that adding such a requirement would “unreasonably” limit the reach of antitrust law. The DOJ further stated that it does not support Tesla or opponents in the case, adding that it has no opinion on the “proper decision” of the appeal.
Lawyers for the Louisiana Motor Vehicle Commission did not respond to Portal’ request for comment on the matter, nor did Tesla. The DOJ declined to comment.
In Vance’s ruling, she said the ban “applies to all vehicle manufacturers and that Tesla has not alleged any facts about anti-Tesla antipathy on the part of the Louisiana Legislature.”
Tesla argued in its appeal that car dealerships in Louisiana had previously “agreed among themselves to harass Tesla with unfounded investigations and drive it out of the state.”
A date for the appeals court hearing has not yet been set, and this is just one of many direct sales bans Tesla is facing at the state level in the US
In Connecticut, Tesla partnered with Mohegan Sun, a casino operated by the Mohegan Tribal Nation, to circumvent direct sales bans in the state and set up a showroom. Similar direct sales laws have also been proposed in Mississippi, Florida and elsewhere that would force some residents to leave the state to buy vehicles from Tesla and other automakers with online purchasing models or to have vehicles serviced by them.
Tesla settled a similar case in Michigan in 2020, with the state agreeing that “any Michigan resident may lawfully purchase a Tesla and have it serviced in Michigan.”
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