08:07 AM EDT, 07/22/2025 (MT Newswires) -- Tesla (TSLA) has settled a lawsuit against Louisiana, various auto dealerships, and trade groups concerning the state's ban on direct vehicle sales to consumers that has been in place since 2017, Reuters reported Monday, quoting a dismissal motion filed in federal court in New Orleans.

The motion states that Tesla's claims have been "fully and finally resolved," with state officials maintaining they were simply performing their official duties and did not violate any criminal laws, the report noted.

Tesla had filed the lawsuit in August 2022 against members of the Louisiana Motor Vehicle Commission, dealerships owned by individual commissioners, and the Louisiana Automobile Dealers Association, Reuters said.

The company accused certain commissioners affiliated with rival dealerships of exploiting their regulatory authority to target Tesla's direct-sales business model, which does not utilize franchised dealers, describing it as an alleged "existential threat," it noted.

The lawsuit also challenged restrictions on leasing and servicing Tesla vehicles in Louisiana, the report added.

Tesla didn't immediately reply to MT Newswires' request for comment.

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