Lucid Group USA v. Texas DMV: Direct Sales Prohibition Ruling

A Fifth Circuit Court of Appeals ruling that upholds a Texas law prohibiting car manufacturers from selling vehicles directly to consumers. The electric vehicle manufacturer Lucid Group challenged this ban, arguing it violated constitutional Equal Protection and Due Process rights by preventing their direct-sales business model. The court ultimately affirmed the district court's judgment, citing established legal precedents like the Tesla and Ford cases which maintain that the state has a rational interest in preventing vertical integration to protect the retail market. While the majority opinion enforces the law, two judges issued concurrences "dubitante," expressing significant skepticism about whether these decades-old regulations truly serve consumers. These judges suggest that the ban may actually function as economic protectionism for traditional dealerships while stifling innovation and increasing prices for electric vehicle buyers. Consistent with prior rulings, the court concluded that the legislature may legally distinguish between manufacturers and independent dealers regardless of the specific technology or business model involved.