Franchise laws in all 50 states ban direct manufacturer sales, adding $2k+ per vehicle

Every U.S. state has a franchise dealer protection law that prohibits or severely restricts automakers from selling directly to consumers, forcing every transaction through a franchised middleman. This adds an estimated $2,000+ per vehicle in dealer margin, facility overhead, and sales commission that would not exist in a direct-to-consumer model, which is why Tesla and Rivian have fought multi-year legal battles in dozens of states. The laws persist because the National Automobile Dealers Association is one of the largest lobbying groups in the country, dealer principals are influential in local and state politics, and the laws were originally written in the 1950s to protect small dealers from manufacturer coercion but now primarily protect dealer profits from competition.