Tesla has lost its right to sell vehicles in Missouri after a judge failed to renew the brand’s dealer license, marking another setback in Tesla’s push to sell cars directly to customers.
In 2015, Tesla was issued with a dealer license in Missouri and has been selling its vehicles online and through stores in St.Louis and Kansas City. However, Cole Country Circuit Court judge Daniel Green has ruled that the automaker can’t have a dealership license as it is not a franchisee.
This decision came after the Missouri Auto Dealers Association sued the revenue department claiming that Tesla’s direct-to-consumer sales model was against state law.
The ruling is being appealed but judge Green denied Tesla’s motion to stay or temporarily halt the judgement.
In response, Tesla issued a statement stating that it will ask the Court of Appeals to issue a stay of the judge’s decision to avoid having to immediately close its Missouri stores.
In an emailed statement issued to the St. Louis Post-Dispatch, the company said “Tesla has been selling cars in Missouri for almost four years and employs numerous people at its Missouri sales locations. We do not believe that we should have to close up those sales operations while the Court of Appeals considers whether we may continue selling in the state.”
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