this post was submitted on 28 Nov 2023
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Laws have to change for direct sales of cars, mostly at the state level. Dealership owners also happen to be big donors to state elected officials.
And the typical response of "JuSt Be YoUr OwN LoBbYiSt!"
There are over 300 million pissed off people in this country, you think my dumb ass is somehow going to organize better than literally anyone else?
I'm not so sure about that. Interstate trade is the sole domain of the federal government technically. If you are in Tennessee buying from a manufacturer in Detroit, I would think that federal laws would override state laws. Realistically, I'm not so sure how that works okay out.
It's been this way for decades without a serious challenge. Tesla has tried and largely failed to fight this (whatever else you might say about Tesla).
I think part of what Tesla failed at was opening direct buy dealerships in states, which becomes Intrastate commerce. They do allow you to direct buy, just not from the "showroom".
Tesla... failed... at? Have you seen how profitable that company is now?
Tesla failed at (one thing) is not the same as Tesla failed completely.
I think context is important here. We were talking about how Tesla failed to open direct to consumer dealerships owned by Tesla because of state laws.
I suppose that understates it. They failed to get laws changed in a few red states. Considering how they can't produce vehicles fast enough, I don't know how much that even matters.
Most states with sales taxes include auto sales, so it's also that they bring in a ton of government revenue.