The Louisiana Automobile Dealers Association (LADA) isn’t too happy that Tesla is suing them. Tesla is suing LADA, the Louisiana Motor Vehicle Commission (LMVC), and several of its board members who are mostly car dealers themselves. One of them is the former mayor of my hometown, Keith Hightower who owns Holmes Honda.
LADA president, Will Green, told Nola.com that “the factual allegations appear baseless and grossly misstate the specific history of the plaintiff’s doing business in Louisiana.”
Green also said that Tesla’s allegations, “appear to go against years of antitrust jurisprudence and constitutional law.” He added that rolling back direct car sales prohibition would risk thousands of jobs in the car retail industry.
“Louisiana dealerships benefit communities by employing nearly 35,000 folks in good paying careers spanning sales, service, and management that average more than $70,000 in compensation.”
“Out of state technology companies don’t care about Louisiana’s communities – local dealerships that have operated here for generations do.”
LMVC chairman and owner of Dixie RV SuperStores, Gregory Lala, was also named in the lawsuit. Teslarati reached out to both the LADA and LMVC for comments and we will update you if we receive them. Teslarati also reached out to Homes Honda for comment.
Tesla is suing these individuals and organizations to protect Louisiana consumers. In the lawsuit, Tesla said that it uncovered communications between the LADA members and LMVC which are “evidencing a common purpose to exclude Tesla from operating in Louisiana.”
“Although Louisiana law (unconstitutionally) prohibits Tesla from selling its vehicles in Louisiana, nothing in Louisiana law prohibits Tesla from leasing its vehicles in Louisiana or providing warranty repairs and services for the many Tesla vehicles in Louisiana,” Tesla said.
Note: Johnna is a Tesla shareholder and supports its mission.