Apr. 6, 2026
Auto dealers confront legal battles over direct-to-consumer EV sales model
Electric vehicle makers' efforts to bypass franchised dealers and sell directly to consumers are colliding with longstanding state franchise laws, sparking litigation and forcing legacy automakers to navigate legal barriers as they attempt to replicate Tesla's model.
Electric vehicle makers' push to sell directly to consumers, bypassing traditional franchised dealerships, is triggering a new wave of legal and regulatory conflict across the automotive industry, according to industry attorney Aaron H. Jacoby.
At the center of the dispute is a tension between legacy franchise laws, which protect dealer networks, and the growing appeal of Tesla's direct-sales model, which eliminates intermediaries and gives manufacturers greater control ov...
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