To the Point

Is Tesla a Threat to Car Dealerships?

Since the start of the US auto industry, manufacturers have granted the right to sell vehicles to new-car franchisers. State laws now require that car makers leave retail sales to somebody else. But a tiny new maker of electric cars is challenging that system.

By Warren Olney • May 12, 2014 • 1 min read

Since the start of the US auto industry, manufacturers have granted the right to sell vehicles to new-car franchisers. State laws now require that car makers leave retail sales to somebody else. But a tiny new maker of electric cars is challenging that system. Elon Musk, who founded PayPal and was the first to launch private missions to the International Space Station, is making the sleek, expensive Tesla. Rather than use the franchise system, he's setting up his own stores. Auto dealers and regional associations are fighting back. Jerry Hirsch reports on the auto industry for the Los Angeles Times.

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To the Point

Is Tesla a Threat to Car Dealerships?

Since the start of the US auto industry, manufacturers have granted the right to sell vehicles to new-car franchisers. State laws now require that car makers leave retail sales to somebody else. But a tiny new maker of electric cars is challenging that system.

Share

To the Point

Is Tesla a Threat to Car Dealerships?

Since the start of the US auto industry, manufacturers have granted the right to sell vehicles to new-car franchisers. State laws now require that car makers leave retail sales to somebody else. But a tiny new maker of electric cars is challenging that system.

Share