Background: The Missouri Department of Revenue granted Tesla the ability to sell directly without using the dealership process. As a result, the Missouri Automobile Association brought a lawsuit in 2015.
The Appellate Court Ruling:
- The Court said the Autodealers did not have standing to bring suit against the Department of Revenue and that the “association’s challenge sounded more like a competitor seeking to avoid competition than an attempt to defend a larger public interest”
- Tesla’s argument stressed that prohibiting direct sales is an “attempt to decrease competition and limit consumer choice”
- Autodealers argument against direct sales is there must be a way by which to challenge the direct sales.
Washington Post | Tesla wins legal battle over Missouri licenses to sell cars