An appeals court in Missouri has slapped down a lawsuit brought by the Missouri Auto Dealers Association in 2015. MADA wanted the court to order the Missouri Department of Revenue not to allow Tesla to sell its automobiles directly to consumers in the Show Me State.
The case was heard in 2016 by Cole County circuit court judge Daniel Green, who ruled that Tesla is not a franchisee as defined by Missouri law. He ordered the Department of Revenue not to renew Tesla’s licenses to sell cars in Missouri.
Tesla immediately shut down its stores in University City, which is west of St. Louis. and in Kansas City. It later reopened them after the court gave them permission to continue operating pending an appeal. On December 5, the Missouri Court of Appeals for the Western District ruled that MADA had no legal standing to bring its lawsuit and dismissed its claim.