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The ban on auto manufacturers selling directly to the public in Wisconsin.


In Wisconsin, state law prohibits auto manufacturers from selling directly to consumers, requiring them to go through dealerships. This has sparked a legal battle with Tesla, as the company operates galleries in Wisconsin but cannot sell vehicles due to the ban on direct sales. The law dates back to the mid-20th Century and was intended to protect dealerships from unfair competition. However, Tesla argues that it should be exempt from this law as it does not have franchisees like traditional manufacturers.

The debate over direct sales is crucial for electric vehicles, as the traditional dealership model may not be suitable for their sale and service. Tesla believes that direct sales are better for consumers, offering uniform prices and a “middleman-free experience.” The company has filed a lawsuit in Wisconsin in an attempt to challenge the state’s restrictions on direct sales. The case may end up before the Wisconsin Supreme Court, highlighting the ongoing battle between Tesla and state regulations.

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