An appeals court ruled that a Missouri dealers' organization could not sue the state Department of Revenue over licensing decisions.

Tesla has emerged victorious in a legal dispute over its retail licenses in Missouri.

The company initially encountered no problems obtaining retail licenses for two showrooms, however the Missouri Auto Dealers Association sued the state's Department of Revenue for issuing the permits.

The group argued that state law prohibits Tesla from selling cars directly to customers without a franchise network of third-party dealers.

Courts initially sided with MADA, causing Tesla to briefly shutter its Kansas City and University City stores for a few days until a judge gave the greenlight to keep operating during the appeals process.

The Missouri Court of Appeals has now reversed the lower-court decision, ruling that MADA never had the grounds to sue the state agency over the Tesla licensing decision.

"Until such time as the Legislature expands its present judicial oversight restrictions relating to the Department's licensing decisions, it is the forum of the political process — where the plaintiffs have historically shown political muscle — to which the content of the licensing arguments of this lawsuit against the Department must be evaluated," Chief Judge Mark Pfeiffer wrote in the ruling, as quoted by the St. Louis Post-Dispatch.

Tesla continues to face resistance in other states as it attempts to ramp up Model 3 production.