A federal appeals court panel on Monday revived Tesla's antitrust lawsuit stemming from a Louisiana law that prohibits car-makers from selling directly to consumers and performing warranty repairs for vehicles they sell.

Judges Jerry Smith and Haynes of the U.S. Court of Appeals for the Fifth Circuit said the lower court was wrong to dismiss the electric car company's allegations that members of the Louisiana Motor Vehicle Commission and the Louisiana Automobile Dealers Association conspired to stop Tesla from carrying out its business model of directly leasing and servicing cars through its own stores. The commission, composed of LADA members, is in charge of enforcing the underlying law.