KANSAS CITY, Mo. (AP) – An appeals court has ruled that electric car maker Tesla Inc. can continue to sell its vehicles directly to consumers in Missouri.

The Missouri Court of Appeals on Tuesday reversed a lower court ruling in a lawsuit filed by the Missouri Auto Dealers Association.

A Cole County judge ruled last year that the Missouri Revenue Department violated state law by granting licenses that allowed the automaker to sell cars directly to customers instead of through a dealership.

The dealership association argued the state gave Tesla special privileges because other manufacturers provide cars to franchised dealerships to sell.

The St. Louis Post-Dispatch reports the appellate court ruled Tuesday that the association lacked standing to sue. The court reversed the lower court’s ruling and dismissed the petition.