Tesla can challenge Louisiana direct sales ban, US appeals court rules

(Reuters) – A divided federal appeals court on Monday revived Tesla’s lawsuit challenging Louisiana’s ban on direct vehicle sales to consumers.

In a 2-1 decision, the 5th U.S. Circuit Court of Appeals in New Orleans reversed the dismissal of Tesla’s due process claim, vacated the dismissal of its antitrust claim, and upheld the dismissal of its equal protection claim.

Tesla, the electric vehicle company run by billionaire Elon Musk, has been suing the Louisiana Automobile Dealers Association, members of the Louisiana Motor Vehicle Commission and a group of dealers.

(Reporting by Jonathan Stempel in New York)