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Tesla vs Dealerships: How Franchise Laws Hurt Tesla and Its Drivers



Tesla is engaged in a lengthy legal battle with American traditional business practices and the franchise laws that protect them. Several states outlaw manufacturer owned dealerships and service centers, but Tesla wants full control over everything for various reasons. This has forced Tesla to bend the law and use every loophole it can find in American legislation to run as it does.

In this video I tell you how Tesla bends the law to own their dealerships and service centers and sell directly to customers.

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Nicomotor is your one stop shop for entertaining, educational content on all things within the automotive industry and all things related to the automotive industry.
I am an avid car enthusiast looking to share my passion with everyone and give outsiders a clear understanding of all the latest news in the automotive industry. Along the way I will make a lot dumb jokes or sarcastic comments so follow along and enjoy the ride, for this is YouTube’s most limited edition automotive channel.

Here are my sources:

Legality

Why Can’t Car Manufacturers Direct Sell to Consumers?


https://www.ftc.gov/enforcement/competition-matters/2015/05/direct-consumer-auto-sales-its-not-just-about-tesla
https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_States

What legal protections do franchise dealers have against direct manufacturer sales? – Len Bellavia, Esq.


https://www.autonews.com/retail/direct-sales-efforts-heat-states
https://insideevs.com/news/583103/tesla-direct-sales-success-versus-legacy-ev-sales/
https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes

reference
https://www.investopedia.com/articles/active-trading/072115/what-makes-teslas-business-model-different.asp
https://www.cnbc.com/2019/04/05/tesla-online-sales-gives-customers-what-they-want-no-car-salesman.html
https://www.autonews.com/retail/direct-sales-efforts-heat-states
https://www.iebrain.com/wp-content/uploads/2017/08/Tesla-direct-Retail.pdf
https://www.cnbc.com/2019/04/05/tesla-online-sales-gives-customers-what-they-want-no-car-salesman.html
https://www.justice.gov/atr/economic-effects-state-bans-direct-manufacturer-sales-car-buyers

Tesla
https://www.tesla.com/support/mobile-service
https://www.tesla.com/findus?v=2&bounds=38.30751382970903%2C-72.76795622645872%2C29.869597140783217%2C-93.86170622645872&zoom=7&filters=party%2Cstore%2Cservice
https://www.tesla.com/findus/list/stores/United%20States
https://www.tesla.com/findus/list/services/United+States

Source