Lucid Sues Texas in Attempt to Overturn Rules on Dealerships

Lucid Group Inc. filed a federal lawsuit in Texas accusing the state’s rules on auto dealerships of “economic protectionism” that hurt the company’s ability to sell its electric vehicles there.

In a suit filed in Austin, Lucid said the state is acting anti-competitively in forcing companies to sell their products through established dealerships.

The Newark, California-based company, which markets its vehicles online and through a network of Lucid-owned Studios, maintains that its direct sales and in-house after-sales service are so closely tied that using an independent franchised dealer would not be economically viable and would harm the business.

“That tight ...