Lucid Group has requested an en banc review of a Fifth Circuit ruling that upheld Texas's direct sales prohibition. The ruling states that the ban does not violate the Fourteenth Amendment’s equal protection and due process clauses. Two judges expressed doubt about the ban's motivation, suggesting it may be improper economic protectionism. The case highlights the ongoing debate over direct sales models in the automotive industry. Lucid argues its vertical integration could lower consumer prices, potentially stifling innovation.
Why it matters for your car
This case could impact future direct sales models in the automotive industry, affecting consumer choices and prices.
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