Tesla Sues North Dakota as it Seeks to Open Car Dealerships in State

(Photo by Amy Dalrymple/North Dakota Monitor)

(North Dakota Monitor) – The largest manufacturer of electric vehicles in the United States is suing the state of North Dakota in its quest to open a pair of car dealerships in Bismarck and Fargo.

The case, filed by Tesla, is in the hands of South Central Judicial District Judge after a hearing.

North Dakota law prohibits vehicle manufacturers from owning car dealerships and requires them to sell their products to franchised dealerships for resale to consumers. Tesla, unlike producers of conventional vehicles like Ford or Chevrolet, operates its own car dealerships and sells directly to consumers.

Tesla is asking the court to declare the company does not fall within the definition of manufacturer contained in state law. The term is defined as a person who assembles or imports a motor vehicle and sells it to dealers in the state for resale.