Published online by Cambridge University Press: 13 November 2025
The legacy Detroit manufacturers were between a rock and a hard place. Having just emerged from near-death experiences during the 2008–09 financial crisis, they now had to face the onslaught not only of EV technology that they had long resisted but also of a company that refused to play by the settled rules on how cars are sold and serviced. Led by General Motors (GM), the legacies decided that their best tactic was to stand with their dealers and argue that Tesla should be denied direct sales, which would not only prevent Tesla from getting ahead but could keep Tesla far behind. This “raising rivals’ costs” strategy ultimately backfired, as Tesla got the right to sell direct in most states, and the legacies missed the chance to get their own right to compete with Tesla on a level playing field.
To save this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.