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Tesla Sues Utah Over Car Sales

Tesla is fighting in court to sell its sleek electronic cars in Utah, arguing that laws regulating traditional car dealers don't apply to it because its business model is fundamentally different.

The company built a $3 million showroom in Salt Lake City, but hasn't been able to sell new cars there because officials decided it breaks state laws about car makers owning dealerships.

Tesla is challenging that decision before the Utah Supreme Court. They say restricting their sales in Utah violates a free-market policy enshrined in the state constitution.

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Utah argues there are still rules in a free market, and laws keeping car makers from unfairly competing with dealerships do apply to Tesla.

A proposal to change the law so Tesla could sell failed this year after the company pulled its support.