Lucid sues Texas in an attempt to overturn direct sales ban

Lucid Stealth 1
Credit: Lucid Group

Lucid is officially suing the State of Texas. In a suit filed in Austin this week, Lucid accuses the State of acting anti-competitively by forcing vehicle sales through dealerships.

Lucid named Monique Johnston, the Director of the Motor Vehicle Division at the Texas Department of Motor Vehicles as the defendant.

According to the plaintiff’s statement:

That tight and fast feedback loop, and the benefits it brings to Lucid’s customers, would be impossible with third-party dealers interposed between Lucid and consumers. (via Bloomberg)

Lucid is borrowing a tried and tested legal strategy from Tesla for this suit.

Tesla sued state officials in Michigan for a similar issue, and the parties settled after three years of litigation.

Tesla is now one of the only direct-to-consumer automakers able to sell and service vehicles in the State of Michigan.

Lucid and other start-up EV companies have followed Tesla’s lead and preferred a direct sales approach.

However, some states continue to maintain archaic dealership rules. Connecticut for example still bans direct sales despite repeated attempts over the years to pass legislation that would allow Tesla and other EV automaker to sell their cars in the state.

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If this case in Texas is successful, it will hopefully open up direct sales for all automakers. Despite now calling the Lone Star State their home, Tesla is not allowed to sell their cars directly to consumers in Texas.

For years, Tesla has been working political channels to change dealership laws, but has so far been unsuccessful.

Neither Lucid or the Texas Department of Motor Vehicles commented on the suit.

The case is Lucid Group USA Inc. vs Monique Johnston et al., 1:22-cv-1116, U.S. District Court, Western District of Texas (Austin division).
About Scott Nordlund 1359 Articles
Originally from the West Coast, Scott is an avid writer & EV enthusiast now living in Ottawa. He holds a MA in Political Science and once played professional football in the German Football League. Email scott@driveteslacanada.ca