In 2025, Wisconsin’s vehicle regulations have come under renewed scrutiny, with recent legal battles and legislative changes impacting which vehicles—and more specifically, which vehicle sales models—are permitted on the state’s roads. Contrary to some misconceptions, Wisconsin has not enacted a sweeping ban on specific vehicle types such as gas-powered or electric vehicles.
Instead, the most significant restrictions pertain to how certain vehicles, particularly from manufacturers like Tesla, are sold to consumers. This article explores the details of Wisconsin’s current vehicle bans, the legal context, and the latest statistics shaping the state’s automotive landscape.
Wisconsin’s Direct Sales Ban: The Core Restriction
Wisconsin enforces a nearly 35-year-old law that prohibits auto manufacturers from selling vehicles directly to consumers. Instead, all new vehicles must be sold through licensed, independent dealerships. This law, originally enacted in 1993, was designed to protect local dealerships from competition with manufacturers’ own retail operations.
“A factory shall not, directly or indirectly, hold an ownership interest in or operate or control a motor vehicle dealership in this state.”
This restriction has sparked ongoing legal disputes, most notably with Tesla, which relies on a direct-to-consumer sales model. While Tesla operates two galleries in Madison and Milwaukee, state law prevents these locations from selling vehicles or even discussing pricing and promotions. Wisconsin residents who wish to purchase a Tesla must do so online or travel to a neighboring state without such restrictions.
No Ban on Gasoline or Electric Vehicles
Despite national debates and environmental policy shifts, Wisconsin has not banned the sale or use of gasoline-powered or electric vehicles. In fact, state lawmakers have introduced legislation specifically to prevent any future state or local bans on vehicles based on their energy source. This move is intended to preserve consumer choice and prevent government mandates regarding vehicle types.
Electric vehicle (EV) sales are legal and growing, with nearly 3,000 to 4,000 Teslas purchased by Wisconsin residents in 2024 alone.
Gasoline vehicles remain fully legal and are not subject to any phase-out or prohibition in Wisconsin, unlike in some other states planning to ban new gas-powered vehicle sales after 2035.
New Regulatory Changes for 2025
While the direct sales ban remains the most prominent restriction, other new laws affecting vehicles in Wisconsin for 2025 include:
Excise Tax for EV Electricity: Starting January 1, 2025, owners of electric vehicles must pay a 3-cent per kilowatt-hour excise tax on electricity used at public charging stations. This tax does not apply to at-home charging.
No New Vehicle Type Bans: There are no new bans on specific vehicle types (e.g., motorcycles, diesel trucks, hybrids) for 2025.
Latest Vehicle and Road Safety Statistics
Vehicle Sales and Tax Revenue: New car dealerships contributed nearly $600 million in state sales tax revenue in 2024, accounting for about 8% of Wisconsin’s total sales tax revenue.
EV Infrastructure: Wisconsin currently has around 450 fast-charging stations, with plans to add 60 more statewide using federal infrastructure funds.
Traffic Fatalities: In 2022, Wisconsin recorded 596 traffic fatalities. The state aims to reduce this number to 562 by the end of 2026, reflecting a targeted 2% annual decrease.
Conclusion
As of 2025, Wisconsin’s most significant vehicle-related ban is on direct sales by auto manufacturers, not on specific vehicle types. This policy primarily impacts companies like Tesla, which must navigate dealership laws to sell vehicles in the state.
Meanwhile, both gasoline and electric vehicles remain legal and widely available, with lawmakers actively working to prevent future bans based on vehicle energy sources. Wisconsin continues to adapt its regulatory and tax framework to accommodate evolving automotive technologies, while focusing on road safety and infrastructure improvements to support all drivers.
Source:
[1] https://wisconsinwatch.org/2025/04/wisconsin-auto-car-manufacturers-selling-tesla-musk/
[2] https://pbswisconsin.org/news-item/why-wisconsin-bans-auto-manufacturers-from-selling-directly-to-the-public/
[3] https://www.wpr.org/economy/epa-electric-vehicle-emissions-lawmakers-avoid-bans-gas-powered-cars
[4] https://www.fox6now.com/news/new-wisconsin-laws-2025
[5] https://www.nhtsa.gov/sites/nhtsa.gov/files/2023-10/WI_FY24HSP-tag.pdf
[6] https://www.clarkcountywi.gov/highway-seasonal-weight-limits
[7] https://thebadgerproject.org/2025/04/09/wisconsin-bans-auto-manufacturers-from-selling-to-the-public-heres-why/
[8] https://www.onfocus.news/2025-seasonal-weight-restrictions-are-now-being-enforced/
[9] https://tn.bristol.wi.gov/2025/02/27/seasonal-weight-limits-start-march-3-2025/
[10] https://www.moensheehanmeyer.com/blog/new-laws-in-wisconsin-for-2025/
[11] https://www.wpr.org/energy/wisconsin-assembly-approves-bills-would-prevent-state-local-bans-gas-powered-cars
[12] https://wisconsindot.gov/Pages/dmv/com-drv-vehs/mtr-car-trkr/ssnl-wt-rsrctns/default.aspx
[13] https://townofhayward.com/2025/02/27/road-bans-3/
[14] https://dnr.wisconsin.gov/topic/AirQuality/Mobile.html
[15] https://wisconsindot.gov/Pages/dmv/com-drv-vehs/mtr-car-trkr/ssnl-wt-rsrctns/frozenroad.aspx
[16] https://www.afpm.org/newsroom/news/polling-shows-likely-voters-nationally-and-battleground-states-solidly-oppose-biden
[17] https://www.act-news.com/news/new-year-new-laws-for-evs/
[18] https://docs.legis.wisconsin.gov/document/statutes/347.07
[19] https://apnews.com/article/wisconsin-climate-change-bills-gas-engines-e6d108fc5db335968c58e1323bb1d3dc
[20] https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/AB72.pdf
[21] https://docs.legis.wisconsin.gov/statutes/statutes/348/II/08
[22] https://wisconsindot.gov/Pages/safety/default.aspx
[23] https://wisconsindot.gov/Documents/dmv/com-drv-vehs/mtr-car-trkr/2025-holidays.pdf
[24] https://www.wpr.org/news/tesla-wisconsin-court-blocking-opening-dealerships
[25] https://docs.legis.wisconsin.gov/2025/related/acts/15.pdf
[26] https://indianexpress.com/article/cities/delhi/are-there-62-lakh-old-vehicles-in-delhi-ground-data-suggests-otherwise-10107116/
[27] https://wisconsindot.gov/Pages/dmv/com-drv-vehs/mtr-car-trkr/ssnl-wt-rsrctns/class2roads.aspx
[28] https://www.iea.org/energy-system/transport/electric-vehicles
[29] https://wisconsindot.gov/Pages/about-wisdot/newsroom/news-rel/042325revoke.aspx
[30] https://www.chippewacountywi.gov/government/highway/spring-weight-limits-copy
[31] https://docs.legis.wisconsin.gov/2025/related/proposals/sb45.pdf
[32] https://docs.legis.wisconsin.gov/document/statutes/341.04
[33] https://trackbill.com/bill/wisconsin-senate-bill-82-relating-to-governmental-restrictions-based-on-the-energy-source-of-a-motor-vehicle-or-other-device/2677089/
[34] https://docs.legis.wisconsin.gov/document/statutes/341.05
[35] https://apps.dnr.wi.gov/doclink/waext/wa2050.pdf