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Tesla wins legal battle over Missouri licenses to sell cars

The Missouri Court of Appeals on Tuesday reversed a lower court ruling in a lawsuit filed by the Missouri Auto Dealers Association. (MGN Online)

An appeals court has ruled that electric car maker Tesla Inc. can continue to sell its vehicles directly to consumers in Missouri.

The Missouri Court of Appeals on Tuesday reversed a lower court ruling in a lawsuit filed by the Missouri Auto Dealers Association.

A Cole County judge ruled last year that the Missouri Revenue Department violated state law by granting licenses that allowed the automaker to sell cars directly to customers instead of through a dealership.

The dealership association argued the state gave Tesla special privileges because other manufacturers provide cars to franchised dealerships to sell.

The St. Louis Post-Dispatch reported the appellate court ruled Tuesday that the association lacked standing to sue. The court reversed the lower court's ruling and dismissed the petition.

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