The history of dealer protection laws

In the 20th century, almost every state passed dealer protection laws to safeguard dealers from competition from their franchising manufacturers. These laws, which prohibited manufacturers from opening their own retail stores, were put in place when there were only three large car manufacturers and dealerships were mostly small, family-owned businesses. However, with the rise of electric vehicle (EV) companies like Tesla, the question arose whether these laws applied to companies that wanted to sell directly to consumers. Since 2014, there have been political battles between car dealers and EV companies over direct sales, with a coalition of EV companies, environmental groups, and pro-consumer groups advocating for direct sales.