[URSpider94]

Car manufacturers created the franchise system as a way to avoid them having to carry the cost of vehicle inventories and repair facilities across the country. Having done so, the dealerships lobbied the state legislatures to formalize their status in law, so that they couldn't be disintermediated by the manufacturers later.

I believe that the argument in their favor, other than blatant self-interest, was that dealerships provide post-sales warranty service, which would otherwise not be readily available. In some states, IIRC, the statutes are written to say that vehicles can only be sold from a location that also offers warranty service.

[Alupis]

Dealerships have always felt to me to be some of the sneaky-est, deceptive and sometimes shady businesses I've had experience with. I think direct sales from manufacturers makes more sense...

[hatbert]

I think the part most people are having trouble with is not what is contained in your first paragraph, but how the legislature/executive goes from there to "Every manufacturer, including those that never set up franchise agreements, must sell through a dealership." The especially galling part of the New Jersey kerfuffle is that Tesla was defined to be a "franchisor" despite the fact that they have never entered into a franchise agreement!

[Shivetya]

If Tesla attempts to prevent independent service facilities from providing warranty and service work then be very worried. Laws exist to give consumers the choice for a reason.

With multiple dealers at least you can choose which one to buy from, who has better people, better service, and better pricing. Why people want Tesla only stores is beyond me, one choice means no choice.

[Crito]

It's not about wanting only Tesla stores. It's about wanting Tesla stores at all.

If consumers really do value dealers, then dealers will continue to exist. The reason that dealers are scared is that the dealers themselves do not believe that they provide a valued service.