The North Dakota Monitor is reporting Tesla is suing North Dakota as the company tries to open dealerships in Fargo and Bismarck.
The lawsuit challenges the state’s ban on direct sales by vehicle manufacturers after the Department of Transportation denied Tesla’s applications. North Dakota law generally requires new vehicles to be sold through independent dealers rather than directly by automakers.
Lawyers argued the case Monday before South Central District Judge Bonnie Storbakken.
Tesla says about 800 of its vehicles are already registered in North Dakota, and the company argues the current law blocks the direct-sales model it uses in other states.
The judge has not yet ruled.
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