Tesla has filed an official petition with the state of Wisconsin to let the company sell cars directly to consumers, coming as the latest in the company’s attempts to overturn direct sales bans across several U.S. states.
After Tesla officially filed the petition with the Outagamie County Circuit Court last month, the court has received responses from multiple parties in filings earlier this month. Such parties include the Wisconsin Department of Transportation and the Wisconsin Automobile and Truck Dealers Association, and the court has officially set a hearing date on the petition.
Currently, Wisconsin is just one of many states in which Tesla buyers must drive out of state to purchase and pick up one of the company’s vehicles, due to laws requiring automakers to sell vehicles through a dealership. While Tesla, Rivian and other direct sales companies have gained some ground in overturning these laws, many states including Wisconsin still prohibit the model.
The Circuit Court has set a motion hearing for the case for March 24. The case number for for Tesla, Inc. vs. Wisconsin Department of Transportation et al is 2025CV000075, and you can see the case filing here on the Wisconsin courts website.
READ MORE ON DIRECT SALES LAWS: Tesla granted license for direct vehicle sales in Kentucky
Across the U.S., there are 22 different states that either have active bans on direct vehicle sales or limitations on how many stores direct sales automakers like Tesla can open. The efforts to overturn such bans last year gained some ground in Kentucky, where Tesla was granted a license for direct sales in August, as well as in Louisiana, where an appeals court backed the company in its right to sue the state over dealership laws.
Other automakers such as Lucid Motors, Rivian and, more recently, Volkswagen’s new venture Scout Motors have faced opposition from dealers and dealership lobbying groups such as the aforementioned Wisconsin Automobile and Truck Dealers Association, ultimately upholding the bans in several states.
Some other states that don’t have bans on direct vehicle sales, such as Florida, have also introduced new legislation in the past few years attempting to ban direct sales.
Below you can see which U.S. states still have direct vehicle sales bans in place, and which either limit stores or allow Tesla to sell direct-to-consumer through loopholes.
Which U.S. states still have bans on direct vehicle sales?
Alabama (including service centers)
Arkansas
Connecticut (only leasing is allowed, and the company also uses a tribal land loophole)
Iowa
Kansas (including storefronts)
Louisiana (Tesla uses special license with “service center” model as loophole)
Nebraska
New Mexico (including service centers, and the company also uses a tribal land loophole)
Oklahoma
South Carolina (includes service centers)
Texas (Tesla gets online loophole with “service center” model)
West Virginia (including storefronts)
Wisconsin
U.S. states that limit the number of direct sales-eligible stores
Illinois (limited to 13)
Maryland (limited to 4)
Mississippi (limited to 1)
New Jersey (limited to 4)
New York (limited to 5)
North Carolina (limited to 6)
Ohio (limited to 3)
Pennsylvania (limited to 5)
Virginia (limited to 5)
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
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