July 21 (Reuters) - 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.
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."
The lawsuit also challenged restrictions on leasing and
servicing Teslas in Louisiana.
Lawyers for the defendants did not immediately respond to
requests for comment. Tesla and its lawyers did not immediately
respond to similar requests.
In August 2024, the federal appeals court in New Orleans
revived Tesla's constitutional due process claim and set aside a
judge's dismissal of its antitrust claim, citing possible bias
against the Austin, Texas-based automaker.
Last month, the U.S. Supreme Court declined to hear an
appeal of that decision by 18 motor vehicle commissioners.
The case is Tesla Inc ( TSLA ) et al v. Louisiana Automobile Dealers
Association et al, U.S. District Court, Eastern District of
Louisiana, No. 22-02982.