Tesla’s Attempt to Obtain a License in North Dakota Dismissed

Tesla attempted to open two dealerships to be located in North Dakota (Fargo and Bismarck).  Tesla’s dealer license applications were denied on the basis that Tesla was not permitted to sell directly under the state law.  Tesla filed a lawsuit in June, 2025 asking the Court to determine that Tesla would not be prohibited from having a dealer’s license and thereby opening a path to sell direct.  The issues in the case centered around whether the statute applies to Tesla as a direct seller, or only to manufacturers that have dealers.  

BSM (Jason Allen) was retained to submit an Amicus Curiae brief on behalf of the Automobile Dealers Association of North Dakota (ADAND) that supported the State of North Dakota’s denial of a new motor vehicle dealer’s license to Tesla.  The Court permitted BSM, on behalf of ADAND, to submit the brief and participate in oral argument on Tesla’s motion for summary judgment.  The hearing occurred on April 13, and the Court issued a decision on May 27 that dismissed Tesla’s case.  It remains to be seen whether Tesla will appeal or continue its efforts to sell direct, but for now Tesla’s case has been defeated.