Summary
- Tesla filed a petition with Wisconsin to allow direct car sales
- Wisconsin currently prohibits direct sales and requires vehicles to be sold through dealerships
- The Circuit Court has set a motion hearing for March 24 on the petition
- There are 22 states with bans or limitations on direct vehicle sales
- Other automakers like Lucid Motors and Rivian have also faced opposition from dealerships and lobbying groups, leading to bans in some states
Article
Tesla has filed an official petition with the state of Wisconsin to challenge the ban on direct vehicle sales, which would allow the company to sell cars directly to consumers. Currently, Wisconsin is one of many states that prohibit automakers from selling vehicles directly to consumers, requiring them to go through dealerships. The petition was filed with the Outagamie County Circuit Court and has received responses from various parties, including the Wisconsin Department of Transportation and the Wisconsin Automobile and Truck Dealers Association. A hearing date has been set for the case, with a motion hearing scheduled for March 24.
Across the United States, there are 22 states that have bans or limitations on direct vehicle sales by automakers like Tesla. Last year, efforts to overturn these bans made progress in Kentucky, where Tesla was granted a license for direct sales, and Louisiana, where an appeals court ruled in favor of the company. However, other states continue to uphold the bans, including Wisconsin. The ban on direct vehicle sales in Wisconsin has forced Tesla buyers to travel out of state to purchase and pick up vehicles. Other automakers, such as Lucid Motors, Rivian, and Scout Motors, have also faced opposition from dealers and lobbying groups, leading to bans in several states.
States like Alabama, Arkansas, Connecticut, Iowa, Kansas, Louisiana, Nebraska, New Mexico, Oklahoma, South Carolina, Texas, West Virginia, and Wisconsin still have bans on direct vehicle sales. Some states, such as Florida, have introduced legislation in recent years to ban direct sales as well. In addition to states with bans, there are states that limit the number of stores eligible for direct sales, such as Illinois, Maryland, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, and Virginia. Tesla has been utilizing loopholes, such as using tribal land or service centers, to continue selling vehicles in states with bans or limitations on direct sales.
The case number for Tesla’s petition in Wisconsin is 2025CV000075, and the court has set a motion hearing for March 24. Despite facing opposition from dealerships and lobbying groups, Tesla is continuing its efforts to challenge the bans and limitations on direct vehicle sales in various states. The company’s push for direct sales aims to provide consumers with more choices and a more streamlined purchasing process. As Tesla continues to fight for the right to sell directly to consumers in states like Wisconsin, the outcome of this petition could have significant implications for the future of car sales in the United States.
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