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2 results

  • 6 - Crony Capitalism in the Motor City

  • Daniel A. Crane, University of Michigan Law School
  • Book:
    Direct Hit
    Published online:
    13 November 2025
    Print publication:
    20 November 2025, pp 87-104

  • Summary

    Each state has its own direct sales story, but none is richer than the one that played out in Michigan between 2014 and the present. Michigan pitted the power of the Detroit car companies, the United Auto Workers, and the politically active car dealers’ lobby against a California upstart supported by environmentalists, consumer rights organizations, and free market groups. The dealers got the upper hand in 2014 through legislative chicanery involving a single pronoun – “its” – but soon found that word games can backfire. Chapter 6 provides an inside account of the Tesla wars in the author’s own backyard.

  • 9 - How Tesla Turned the Tide

  • Daniel A. Crane, University of Michigan Law School
  • Book:
    Direct Hit
    Published online:
    13 November 2025
    Print publication:
    20 November 2025, pp 141-156

  • Summary

    Chapter 9 calls the direct sales wars in Tesla’s favor. It has sold over 2 million cars without using a dealer, established a national footprint, and obtained a loyal customer following that vouches for its direct sales approach. This chapter pulls together the fifty-state story of the direct sales wars, showing where each state stands on the issue and how Tesla used creative tactics like locating on Native American lands to circumvent remaining restrictions in holdout states.