Dealers Support the State in Tesla’s Attempt to Obtain a License in North Dakota

BSM has submitted an Amicus Curiae brief on behalf of the Automobile Dealers Association of North Dakota (ADAND) that supports the State of North Dakota’s denial of a new motor vehicle dealer’s license to Tesla.  The licensing statute in North Dakota contains a requirement for the applicant to show that it has a franchise in order to obtain a new motor vehicle dealer license.  Tesla’s application for a dealer’s license was denied, because it does not have a franchise and only sells direct.  Tesla filed an action in court seeking to declare that it is nevertheless eligible to obtain a dealer license.  The State of North Dakota is defending the case, and the ADAND is also participating as an Amicus. The arguments center around whether the statute applies to Tesla as a direct seller, or only manufacturers that have dealers.  Tesla has also challenged the constitutionality of the statute.  

A hearing on Tesla’s motion for summary judgment is scheduled for April 13, and a ruling will follow that hearing.