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Automaker Tesla is opening more showrooms on tribal lands to avoid state laws barring direct sales (techxplore.com)

submitted 1 year ago by L4s@lemmy.world to c/technology@lemmy.world

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Automaker Tesla is opening more showrooms on tribal lands to avoid state laws barring direct sales::Tesla is ramping up efforts to open showrooms on tribal lands where it can sell directly to consumers, circumventing laws in states that bar vehicle manufacturers from also being retailers in favor of the dealership model.

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[–] Runeandune@lemmy.world 18 points 1 year ago

Outdated laws from the dawn of the car industry. Ford and GM were a lot smaller and definitely couldn’t afford to have a show room in every state and market that might be interested in cars. An industry of small businesses called car dealerships was born.

One worry was that an original mom and pop dealership in a particular area could build a brand, and create great business and awareness for a particular brand, only to have that brand open a direct sell show room after all the risks have been eliminated. They campaigned states/local governments to pass laws prohibiting direct selling or more commonly (I think) direct selling within some large radius of an existing dealership for the same manufacturer