(Bismarck, ND) — Tesla is suing North Dakota after the State blocks its applications because of a dealership law. In 2024, the Department of Transportation blocked its applications to open dealerships in Bismarck and Fargo. This is because of a state law that prohibits vehicle manufacturers from selling directly to consumers. Tesla argues that it was exempt from the law because direct to consumer sales is the company’s business model. However, the state argues that a wall between manufacturers and dealerships is needed to protect franchise dealerships and consumers.

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