Tesla Inc. (NASDAQ:TSLA) has sued the state of North Dakota's Department of Transportation over a law that prohibits automakers from directly selling vehicles to customers within the state.
Tesla Vs. North Dakota
The automaker filed a lawsuit against the state in August for denying an application submitted by Tesla for opening a showroom in Fargo and Bismarck, which were turned down in 2024 by the state, citing the aforementioned law, recent court filings obtained by the Bismarck Tribune showed on Friday.
Tesla and the North Dakota DOT did not immediately respond to Benzinga's request for comment.
According to the report, Tesla argued that it was exempt from the law as it had centered its business model around not selling to vehicle franchise dealerships, which therefore meant it did not meet the state's definition of a vehicle manufacturer. A hearing before the South Central District Court is scheduled for December, the report said.
This isn't the first time the company is facing off against a state, as Tesla had also filed a lawsuit against the state of Louisiana in 2022 as it sought to sell vehicles directly to customers.
Tesla's Falling Sales, Showroom Fire In France
The news comes amid Tesla's falling sales as demand declines for its vehicles in Europe and China. The automaker reported a three-year low in the Chinese market during October. Including exports, Tesla delivered 61,497 units of the Model Y and Model 3, representing a 9.9% decline.
Tesla's European performance has been lackluster as well, with the automaker's sales in multiple key European countries down 36.3% year-over-year in October. Tesla also recorded a 10.5% decline in European sales during September.
Meanwhile, a Tesla showroom in France reported a major fire incident, which resulted in 24 Tesla cars in the showroom's parking lot being burned down. Authorities have suspected the possibility of arson.
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Price Action: TSLA jumped 0.30% to $410.13 during after-hours trading after it surged 1.13% to $408.92 at the end of the regular trading session, according to Benzinga Pro data.
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