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2 results

  • 2 - Elon Musk’s Direct Sales Decision

  • Daniel A. Crane, University of Michigan Law School
  • Book:
    Direct Hit
    Published online:
    13 November 2025
    Print publication:
    20 November 2025, pp 24-37

  • Summary

    Musk announced Tesla’s decision to go direct to consumers after looking at the history of the legacy car companies with their increasingly onerous dealer networks and the failure of recent EV startups such as Fisker that had tried to sell through dealers. Chapter 2 examines Tesla’s direct sales decision both in Tesla’s own words and with supporting evidence on why selling EVs through franchised dealers is an unworkable business strategy, as demonstrated by the fact that almost every other EV startup has chosen a direct sales approach as well.

  • 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.