Tesla Motors versus America's Auto Dealers Associations
One of the roadblocks Tesla Motors faces in selling their electric cars is laws governing the structure of auto dealerships. Auto makers are prohibited, by law, from selling cars to the public directly. Instead they sell cars indirectly through car dealerships. Car dealerships are required to have on-site service departments, used car operations, etc. The structure of typical car dealerships is because of these legal requirements.
Tesla Motors instead is insisting that this model is broken, and that their car has to be sold directly by them. That if Tesla's cars were sold through dealerships, the dealership would be placing them next to gasoline powered cars. The electric car's very existence undermines the rest of the gasoline powered product line, raising a doubt that car dealerships will put any effort into selling an electric car.
In many states the laws are stringent enough that Tesla cannot conduct sales activities in the state, and has to perform the sale elsewhere.
The ADA (Auto Dealers Association) branches in several states are lobbying strongly to prevent Tesla from selling cars.
