Tesla scores victory in Ohio to keep stores open


I saw this on the news tonight and am happy Tesla won its right to keep selling directly to consumers thru manufacturer owned dealerships. I dont really understand why car dealers are making a big deal about it though. The company is privately owned, cant they do what they want?

Seems like it would be better for consumers anyway to buy directly from the manufacturer, why do we really need to have independent dealers to act like middle men? wouldnt new cars be alot cheaper if we could cut out part of the price?

maybe this is just an industry that needs to be done away with?



As Adam Smith said:

“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices”

In other words, you cannot trust car dealers, they will conspire to get the state to help them keep out competition.


That’s why car dealerships are known as stealerships.


So, why dont car manufacturers just open up their own stores, and sell direct to the consumer, bypassing the middle man? Seems like they would make more money this way and cars would be cheaper for the public…its a win win!


It’s illegal to do that in many states. That is why Tesla’s direct sales model is being challenged in courts.


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