Tesla’s bid to open dealerships in Wisconsin has sparked a significant debate in the state, with the company filing a lawsuit to overturn a law that prevents it from doing so. The case has taken on a life of its own, with Tesla CEO Elon Musk pouring millions into the election for a seat on the Wisconsin Supreme Court.
The issue is rooted in a state law that prohibits vehicle manufacturers from owning or operating dealerships, allowing only third-party dealers to operate. However, Tesla argues that this law stifles competition and limits consumer choice.
Musk has donated $3 million to the Republican Party in Wisconsin, while groups he supports have poured over $17 million into the campaign of Republican candidate Brad Schimel. Critics argue that Musk’s influence is trying to secure a favorable ruling for Tesla should its dealership case make it to the state Supreme Court.
The law was enacted in the 1930s as independent dealerships sought to prevent manufacturers from dominating the market. Nearly 20 states have similar prohibitions, but Wisconsin is one of the few remaining holdouts.
Tesla has been working to secure an exemption from the law for nearly a decade, with Republican legislators introducing bills that would permit Tesla dealerships. However, Democrats in the state government have resisted these efforts, using their partial veto powers to erase provisions related to Tesla dealerships.
The Wisconsin Automobile and Truck Dealers Association has been fighting to preserve the law, arguing that it enables third parties to act as consumer advocates. Bill Sepic, the association’s president and CEO, says Tesla should follow the same rules as other manufacturers.
Tesla filed a lawsuit in January seeking permission to open four dealerships in Wisconsin, citing economic liberty rights and arguing that unaffiliated dealers’ prices are higher and less transparent. The case is pending in Milwaukee County Circuit Court, with no hearings scheduled.
The state Justice Department is defending the law, but Musk has tweeted that voting for Republican candidate Schimel is crucial to preventing voter fraud. However, there is no evidence of widespread voting fraud in Wisconsin, and Trump’s victory in the state last November was affirmed by a recount and an independent audit.
As the election heats up, both candidates have distanced themselves from the Tesla case, with Schimel insisting he would treat any case involving Tesla equally and Crawford saying she would not be beholden to billionaire donors. The outcome of this high-stakes election will determine whether the state Supreme Court flips from liberal to conservative control, with major cases on the horizon.
Source: https://apnews.com/article/tesla-musk-wisconsin-supreme-court-dealerships-101d7608d69dda61aeaf6ebee7903d2b