[johnchristopher]

How is Tesla direct selling to customers hurting car shops that sell cars from one or more traditional manufacturers but none from Tesla ?

Is there a rationale behind that ? As in car shops are scared Ford or GM would open a direct-to-customers shops for lower prices than they could offer to ?

[dagw]

NPR's Planet Money did an interesting show on the topic: http://www.npr.org/blogs/money/2013/02/19/172402376/why-buyi...

[johnchristopher]

Thank you.

> There are plenty other businesses employ lots of people but don't have so much protection from state laws. > > That may partly be due to the fact that car dealers have a lot political power. Dealers contribute a big share of state sales tax revenues — as much as 20 percent in some states — and they tend to be big local employers. That makes state and local legislators listen.

Interesting. So they basically are afraid of any dent in the system even if it wouldn't erode their own sells (of every brand but Tesla).

[messick]

This isn't about Tesla. Tesla's sales numbers are a rounding error compared to any of the big car manufactures.

The dealers are afraid of Ford or Toyota opening up a bunch of their own dealerships. That would really put the hurt on them.

There are over 17k dealers in the US, and they aren't just going to roll over and go out of business.