[cstross]

Why should incumbent manufacturers have to go through dealers? Why can't they sell direct to the end customers via the internet?

Do the incantations "disintermediate all supply chains" and "disrupt all mature industries" suddenly lose all their magical HN mojo when confronted with the Kryptonite of the car industry?

[atdrummond]

Not legal in most US states, especially for established firms with outstanding dealer agreements. (http://en.wikipedia.org/wiki/Car_dealerships_in_North_Americ...)

A not insignificant portion of GM/Chrysler's restructuring costs were buyout payments for dealers, many of whom were not profitable.

[bob13579]

This is a different argument altogether. The original argument was about Tesla playing on an unfair playing field, which is demonstrably false. Other car manufacturers have to go through the same dealer network. Why should Tesla be allowed to sell directly when other car manufacturers can't?

[cstross]

What is this word "allow"?

Who forces car manufacturers to go through a dealer network? Or rather, who forbids them from selling direct to the public? Doesn't that constitute unfair restraint on trade?

I'm serious here. (Non-American speaking.) Is there some law that mandates that cars can only/must be sold through dealers?

[flinty]

There literally is a law in every state that prevents direct sales. Check out this planet money podcast about this very topic http://www.npr.org/blogs/money/2013/02/12/171814201/episode-...

[notdrunkatall]

I think the point is that law should change.

Maybe it actually protected consumers three decades ago, but now, consumers have access to more than enough information to make those kinds of decisions for themselves.