Tesla's legal battle against a Louisiana law that restricts car manufacturers from selling straight to consumers has been given a second life by an appellate court. The electric car manufacturer has been more broadly trying to bypass similar regulations across various states; one workaround has included opening showrooms on Native American tribal properties where state laws don't apply.
A 2-1 ruling by the 5th US Circuit Court of Appeals overturned a lower court's dismissal of Tesla's claim. It found Tesla's allegation that the Louisiana Motor Vehicle Commission showed bias against the company was plausible. The appeals court acknowledged Tesla's argument that the Commission, mostly composed of third-party dealers, has a vested interest in preventing new business models. "The Commission will always be incentivized to exclude new business models from entering the market," Judge Jerry Smith noted in the majority opinion.
The challenge will return to the federal district court in New Orleans for further proceedings. Judges Jerry Smith and Catharina Haynes, appointed by Republican presidents Ronald Reagan and George W. Bush, respectively, agreed with the decision, while Judge Dana Douglas, appointed by Democratic President Joe Biden, dissented. Douglas argued that regulatory boards aren't unconstitutional simply because they include competitors of the entities they regulate. (This story was generated by Newser's AI chatbot. Source: the AP)
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