UpTrajectory Review
The article discusses the ongoing challenges faced by electric vehicle (EV) manufacturers like Rivian and Lucid Motors as they navigate state dealership laws that hinder their ability to sell directly to consumers. These laws, which were established decades ago, create a complex landscape where EV makers must operate within a patchwork of regulations that often favor traditional franchise dealerships. As EV sales slow, these companies are increasingly motivated to streamline the buying process and advocate for changes to these outdated laws.
For small business owners in the automotive sector, this situation highlights the importance of understanding local regulations that can impact sales strategies. The push for direct-to-consumer sales models could reshape the market, offering new opportunities for businesses that adapt quickly. However, there is skepticism about whether these laws will change soon, given the entrenched interests of traditional dealerships. Operators should keep an eye on legislative developments in their states, as they could either open new avenues for sales or reinforce existing barriers.
“Direct sales, they say, let them control pricing, educate first-time EV buyers, and avoid relying on third-party dealers to sell a new kind of vehicle.” — Business Insider
Takeaway: Stay informed about state dealership laws, as they could significantly impact your sales strategy and market opportunities.
Excerpt from the original — Business Insider
EV companies like Rivian are still facing a state-by-state fight to sell their cars without third-party dealerships.Jeffrey Greenberg/Universal Images Group via Getty ImagesEV makers want to sell their cars directly to consumers without going through franchise dealerships.A patchwork of decades-old state dealership-franchise laws restricts the direct-to-consumer model.Three EV makers told Business Insider how those laws complicate the buying process in some states.As EV sales slow down, EV makers have a growing incentive to make their cars easier to buy.Rivian, Lucid Motors, Scout Motors, and other EV makers say they still face a barrier across much of the US: state dealership-franchise laws that restrict where and how they can sell directly to consumers.These laws, largely written decades ago, govern the relationship between traditional automakers and their franchised …