As EV Startups Enter the Market, They Say Dealerships — and a Decades-Old Legal Structure — Stand in Their Way

Read the full story at Morning Consult.

Arguing that traditional dealerships and direct-to-consumer sales should coexist, EV startups are waging a campaign for access to state markets that currently only allow dealerships or online sales.

But dealerships have pushed back, saying the EV companies are welcome to operate within the existing system, and that the patchwork of state laws blocking direct sales protects customers from vertical integration in the automotive industry.

Meanwhile, legacy automakers like GM that have begun working toward goals of producing all EVs in the next decade have repeatedly said they are committed to their franchise relationships, though they also plan to move more toward online sales and a new consumer experience. 

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