Tesla (TSLA, Financial) has officially applied to the state of Wisconsin to sell cars directly to consumers, marking its latest effort to challenge the traditional dealership model in the United States. Wisconsin is among the states that limit direct car sales, requiring manufacturers to sell through dealerships. As a result, Tesla owners in Wisconsin have had to purchase and pick up their vehicles in other states.
The application has attracted significant attention, with the Wisconsin Department of Transportation and the Wisconsin Automobile and Truck Dealers Association filing opposition documents. A court hearing regarding Tesla's application is scheduled, and the case details can be found under the case number 2025CV000075 on the Wisconsin court website.
Current Wisconsin laws prevent manufacturers from direct sales, hindering Tesla and other electric vehicle makers from establishing "factory stores" in the state. Although Tesla continues to sell cars through online orders and out-of-state pickups, this approach increases costs and time for consumers and results in lost tax revenue for Wisconsin.
Tesla has previously sought to overturn similar restrictions in other states. For instance, it secured a direct sales license in Kentucky last year and won an appeals court case in Louisiana. However, 22 states in the U.S. either ban direct sales or limit the number of stores direct-sale manufacturers can open.
Other automakers like Lucid and Rivian face similar challenges in their attempts to enter the market through direct sales, encountering strong opposition from dealerships and lobbying groups. Tesla aims to provide more consumer choices and promote the direct sales model nationwide, despite facing significant resistance from traditional dealership networks and legal frameworks.
