The North Dakota Monitor’s Mary Steurer is reporting Tesla’s effort to open dealerships in North Dakota is being sent back through the state review process.
South Central Judicial District Judge Bonnie Storbakken told the parties that Tesla’s next step is an administrative appeal, after the North Dakota Department of Transportation denied the company’s dealer license applications.
Tesla has been trying to open locations in Bismarck and Fargo. The company sued the state after NDDOT rejected the applications.
The dispute centers on North Dakota’s vehicle dealer laws. State law generally blocks vehicle manufacturers from owning or operating dealerships in the state, and also bars manufacturers from selling new vehicles directly to consumers except through franchised dealers.
Tesla argues its business model is different because it sells directly to consumers instead of using traditional franchise dealerships. State attorneys have argued Tesla is still covered by North Dakota’s dealer laws.
The decision does not give Tesla approval to open dealerships in the state. It sends the fight back to the administrative process first. If Tesla loses there, the company could return to court.
Read the full reporting from Mary Steurer at NorthDakotaMonitor.com.
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