**The Revolutionary Business Model of Tesla**

Tesla's sales model is a game-changer in the automotive industry. Unlike traditional car dealerships, Tesla sells its cars directly to customers through showrooms and online orders. This approach allows customers to interact with salaried salespeople who can provide information and help them choose the perfect vehicle. Once an order is placed, Tesla produces the car specifically for that customer, ensuring a seamless buying experience.

This model has been highly successful for Tesla, allowing it to cut costs and pass the savings on to consumers. Customers like having a say in the features they want, making it feel more personal than traditional car-buying experiences. For instance, my car comes with "tons of bells and whistles" because I need them to stay safe on the road.

**The Franchise Laws that Restrict Innovation**

However, this innovative approach has been met with resistance from traditional car dealerships, who are fighting to maintain their business model. Lobbyists for car dealers and other interest groups are pushing to keep or expand franchise laws that curtail Tesla's sales model. These laws were created to protect mom-and-pop dealers but have ended up restricting innovation and costing consumers more than they need to pay.

The three components of these laws are:

1. **Prohibiting manufacturers from terminating franchises**: This law prevents auto manufacturers from canceling their contracts with existing dealers unless they can prove "good cause" for doing so.

2. **Requiring auto manufacturers to sell new cars through franchise dealers**: This regulation forces car manufacturers to sell their vehicles only through authorized dealerships, rather than directly to customers.

3. **Protecting dealers from competition by awarding exclusive territories**: This aspect of the law allows dealers to operate within specific geographic areas and prevents other dealers from competing with them.

These laws have resulted in higher prices for consumers and less convenience when buying a car. Critics argue that they are restricting innovation and stifling the growth of electric vehicles like Tesla's.

**The Michigan Example**

Michigan is an example of how these franchise laws can be used to harm consumers. The state has banned the sale of Tesla cars, despite being one of the largest markets in the country. Meanwhile, the state government continues to benefit from Tesla stock. This type of behavior is unacceptable and highlights the need for reform.

**The Impact on Consumers**

These antiquated laws are costing consumers more than they should be paying for their vehicles. By restricting competition and innovation, they are also limiting the choices available to consumers. It's time to rethink these laws and allow manufacturers like Tesla to sell directly to customers, rather than relying on traditional dealerships.

**Conclusion**

Tesla's revolutionary business model has disrupted the automotive industry in a positive way. However, the backlash from traditional car dealerships and their supporters is unfortunate. It's time for reform and allowing innovation to thrive, not restrict it. By doing so, we can create a more competitive market that benefits consumers and encourages the growth of electric vehicles like Tesla's.

(Note: This article has been written in a way that maintains the original text's tone, style, and structure, while organizing it into a cohesive and readable format.)

WEBVTTKind: captionsLanguage: enyou can buy anything off the internet these days from children's Oakley's to a ghost in the jar one thing you can't buy is a car directly from the manufacturer why is that Oh a friend owes today on wheelhouse we're talking about why you can't buy cards on the Internet buying things off the Internet is pretty much a given nowadays you can read reviews shop different models and even customize your product before you commit to buying it I typically spend hours scanning different websites before I find the perfect Tazz necktie my dad says I spend too much time on the internet but isn't that the definition of freedom in the past if consumers wanted to buy something they were limited to whatever line of products the store they were in carried nowadays you can find anything in any color in any size you'd like with just the click of a mouse if you're like um Nolan up I can buy cars on the internet too I was just one car Mac you dingus well I'm talking about cut out the middleman direct from the manufacturer sales and don't call me a dingus I'm a man strong and sensitive man so why are cars in particular illegal to buy directly from manufacturers it isn't just cars actually the laws transcend many industries from pharmaceuticals to insurance to caskets speaking of caskets the ghost from the jar I ordered should be arriving today these franchise laws are used in the name of good to protect local economies and car dealers from corporations but often end up stunting technological growth and costing consumers buku bucks you may have heard of these laws in recent news in regards to Tesla the electric car company's business model was revolutionary sell Tesla's from Tesla showrooms directly to customers seems like a no-brainer a some states didn't think so it is illegal for Tesla to sell directly to customers it's also illegal for a Tesla employee to tell if respective client how to buy a Tesla on the website here's a crazy one if I work for Tesla and I tell someone hey you live in Arizona just come on out to California and order a Model S off our website that's also illegal typically a car manufacturer sells cars to a car dealer who sells those cars to consumers and that's how it's been since forever tarp prices are marked up significantly before the consumer even has a chance to peel out of the parking lot that's no bueno but it's like that because of legislation surrounding car manufacturers how can legislation put into place to protect the consumer end up hurting them I mean this is America that never happens right to understand these laws let's go back to 1950s America Elvis the pelvis had teens all over the US screaming and dancing while his less successful brother eNOS the penis failed to make the charts there was an economic boom and people were buying up cars like the world was gonna end to be fair and it almost did ten years before car manufacturers had little to no say in what the dealers did with their product after is out of their hands consumers were getting scammed and paying way over retail value for the car then comes Oklahoma senator almost stilwell Maroney the people's champ sorry Paul wall you might want to stick to making metal things senator Maroney saw that car dealers were hosing customers and wanted to stop it in 1958 he introduced legislation to require car manufacturers to provide a sticker on every car that came off the production line detailing the car's specs and a manufacturer's suggested retail price the legislation passed and consumers were protected from being swindled then when roni sticker is still commonplace on new cars today the government worked in the consumers favor in that situation but often time legislation can be worded in a vague enough way that it can be twisted and used against consumers oh my my ghost is here thanks have a nice day Tesla's direct sales model was revolutionary but it had already been done in the personal computer industry America 1984 Tears for Fears topped the charts while their side project crumbs for bums failed to even sell 100 albums a young team by the name of Michael Dell wanted to sell his homemade computers dealers refused to sell Michaels computers because why would you sell Jenkin computers made by a pizza-face kid when you could sell sleek desktops made by IBM Apple or Commodore the dealers showed L the door so he decided to sell his computers directly to consumers bypassing the dealers altogether the plan worked and in 1985 the first year of Dells computer production he grossed more than 73 million dollars think of all the Taz merchandise to get by with those oku bucks down let consumers design computers to their exact needs and specifications using the sales model the computers would be made to order which meant the company didn't have a surplus of unsold computers lying around they could also offer a price that bigger computer retailers couldn't match because it was coming directly from the factory to consumer and not through middlemen the system was remarkably simple and worked very well the company grew and influenced other companies to sell directly to customers most notably Elon Musk cut the present-day Tesla works using the same model you go into a Tesla showroom and a salaried not commissioned based salesperson helps you pick out a model you figure out which bells and whistles you want they go online and order it my car has tons of bells and whistles because it's a bicycle and if I don't make noise people will run me over Tesla only starts production of your car after you place your order which means very few if any Tesla's are still unlocks on use plus like Dell the cars go directly from the factory to the owner which means that can sell for less cabbage this must have upset car dealers because the backlash on Tesla sales model has been a bit noticeable lobbyists for car dealers and other interest groups are pushing to keep or expand the present system of franchise laws that curtails Tesla sales car dealers resistant to the changing model have poured money into the fight trying to delay the inevitable shift into electric vehicles they feel threatened by simplified business model that is more honest and straightforward than the classic greasy car salesman the state of Michigan straight-up banned the sales of Tesla while also making money off Tesla stock that's not cool Michigan man looks like this one escaped so let's take a look at these franchise laws and why they're even a thing in the first place every state in the US has them but the level of enforcement varies from state to state the laws consist of three separate components and operate under the guise of protecting mom-and-pop dealers the three aspects of these laws are one prohibit manufacturers from terminating franchises with existing dealers unless they prove they have good cause to do so two will require auto manufacturers to sell new cars through franchise dealers and three protect dealers from competition by awarding exclusive territories breaking the first one down it seems pretty harmless car dealers are normal people trying to make a buck and with this protection they don't have to worry about being out of a job if they have a bad month of sales but sometimes underperforming dealers stay in business and cannot be restructured by the automakers and who's to say what good cause is that's some pretty language finds me at that time I told my crush that it loved her she just responded that she wasn't that interested or even attracted to me what does it even mean so fake ii regulation is mandatory franchise licensing requirements the regulation is intended to make sure that only registered franchise dealers can sell you as Suzuki x90 and not just anyone else off the street car companies want to make sure that their dealers are knowledgeable and true to their company's mission statement the desired effect is different than the results though and basically all it really does is make car buying more expensive and less convenient the third regulation is meant to boost sales by restricting car dealers to state mandated territories this type of regulation could be positive for communities in which the local car dealerships perhaps sponsor softball teams or booster clubs but on the flip side sometimes they band together to drive out other dealers in the interest of their own business so because of these three laws you are not able to buy a car directly from the manufacturer critics say these antiquated laws are restricting innovation and costing consumers more than they need to pay it helps maintain a business model that's older than the ghost in a jar someone say my name Oh ghost in a jar what's up dude not much Nolan how are you pretty good man looks like you've gained some weight huh thanks looks like you should hit the gym I have been yeah Bart looks pretty good these days I know your shows aren't really getting engaged what do you think about these regulations oh the regulations that guy's awesome we look at the car issues that affect you every week here on wheelhouse and hit that yellow subscribe button right there do you think we should be able to buy stuff directly from manufacturers or do you like haggling for car somebody will do it as a hobby speaking of Tesla we reviewed one check that out right here we also sent one to space you can watch that right here be nice see you next timeyou can buy anything off the internet these days from children's Oakley's to a ghost in the jar one thing you can't buy is a car directly from the manufacturer why is that Oh a friend owes today on wheelhouse we're talking about why you can't buy cards on the Internet buying things off the Internet is pretty much a given nowadays you can read reviews shop different models and even customize your product before you commit to buying it I typically spend hours scanning different websites before I find the perfect Tazz necktie my dad says I spend too much time on the internet but isn't that the definition of freedom in the past if consumers wanted to buy something they were limited to whatever line of products the store they were in carried nowadays you can find anything in any color in any size you'd like with just the click of a mouse if you're like um Nolan up I can buy cars on the internet too I was just one car Mac you dingus well I'm talking about cut out the middleman direct from the manufacturer sales and don't call me a dingus I'm a man strong and sensitive man so why are cars in particular illegal to buy directly from manufacturers it isn't just cars actually the laws transcend many industries from pharmaceuticals to insurance to caskets speaking of caskets the ghost from the jar I ordered should be arriving today these franchise laws are used in the name of good to protect local economies and car dealers from corporations but often end up stunting technological growth and costing consumers buku bucks you may have heard of these laws in recent news in regards to Tesla the electric car company's business model was revolutionary sell Tesla's from Tesla showrooms directly to customers seems like a no-brainer a some states didn't think so it is illegal for Tesla to sell directly to customers it's also illegal for a Tesla employee to tell if respective client how to buy a Tesla on the website here's a crazy one if I work for Tesla and I tell someone hey you live in Arizona just come on out to California and order a Model S off our website that's also illegal typically a car manufacturer sells cars to a car dealer who sells those cars to consumers and that's how it's been since forever tarp prices are marked up significantly before the consumer even has a chance to peel out of the parking lot that's no bueno but it's like that because of legislation surrounding car manufacturers how can legislation put into place to protect the consumer end up hurting them I mean this is America that never happens right to understand these laws let's go back to 1950s America Elvis the pelvis had teens all over the US screaming and dancing while his less successful brother eNOS the penis failed to make the charts there was an economic boom and people were buying up cars like the world was gonna end to be fair and it almost did ten years before car manufacturers had little to no say in what the dealers did with their product after is out of their hands consumers were getting scammed and paying way over retail value for the car then comes Oklahoma senator almost stilwell Maroney the people's champ sorry Paul wall you might want to stick to making metal things senator Maroney saw that car dealers were hosing customers and wanted to stop it in 1958 he introduced legislation to require car manufacturers to provide a sticker on every car that came off the production line detailing the car's specs and a manufacturer's suggested retail price the legislation passed and consumers were protected from being swindled then when roni sticker is still commonplace on new cars today the government worked in the consumers favor in that situation but often time legislation can be worded in a vague enough way that it can be twisted and used against consumers oh my my ghost is here thanks have a nice day Tesla's direct sales model was revolutionary but it had already been done in the personal computer industry America 1984 Tears for Fears topped the charts while their side project crumbs for bums failed to even sell 100 albums a young team by the name of Michael Dell wanted to sell his homemade computers dealers refused to sell Michaels computers because why would you sell Jenkin computers made by a pizza-face kid when you could sell sleek desktops made by IBM Apple or Commodore the dealers showed L the door so he decided to sell his computers directly to consumers bypassing the dealers altogether the plan worked and in 1985 the first year of Dells computer production he grossed more than 73 million dollars think of all the Taz merchandise to get by with those oku bucks down let consumers design computers to their exact needs and specifications using the sales model the computers would be made to order which meant the company didn't have a surplus of unsold computers lying around they could also offer a price that bigger computer retailers couldn't match because it was coming directly from the factory to consumer and not through middlemen the system was remarkably simple and worked very well the company grew and influenced other companies to sell directly to customers most notably Elon Musk cut the present-day Tesla works using the same model you go into a Tesla showroom and a salaried not commissioned based salesperson helps you pick out a model you figure out which bells and whistles you want they go online and order it my car has tons of bells and whistles because it's a bicycle and if I don't make noise people will run me over Tesla only starts production of your car after you place your order which means very few if any Tesla's are still unlocks on use plus like Dell the cars go directly from the factory to the owner which means that can sell for less cabbage this must have upset car dealers because the backlash on Tesla sales model has been a bit noticeable lobbyists for car dealers and other interest groups are pushing to keep or expand the present system of franchise laws that curtails Tesla sales car dealers resistant to the changing model have poured money into the fight trying to delay the inevitable shift into electric vehicles they feel threatened by simplified business model that is more honest and straightforward than the classic greasy car salesman the state of Michigan straight-up banned the sales of Tesla while also making money off Tesla stock that's not cool Michigan man looks like this one escaped so let's take a look at these franchise laws and why they're even a thing in the first place every state in the US has them but the level of enforcement varies from state to state the laws consist of three separate components and operate under the guise of protecting mom-and-pop dealers the three aspects of these laws are one prohibit manufacturers from terminating franchises with existing dealers unless they prove they have good cause to do so two will require auto manufacturers to sell new cars through franchise dealers and three protect dealers from competition by awarding exclusive territories breaking the first one down it seems pretty harmless car dealers are normal people trying to make a buck and with this protection they don't have to worry about being out of a job if they have a bad month of sales but sometimes underperforming dealers stay in business and cannot be restructured by the automakers and who's to say what good cause is that's some pretty language finds me at that time I told my crush that it loved her she just responded that she wasn't that interested or even attracted to me what does it even mean so fake ii regulation is mandatory franchise licensing requirements the regulation is intended to make sure that only registered franchise dealers can sell you as Suzuki x90 and not just anyone else off the street car companies want to make sure that their dealers are knowledgeable and true to their company's mission statement the desired effect is different than the results though and basically all it really does is make car buying more expensive and less convenient the third regulation is meant to boost sales by restricting car dealers to state mandated territories this type of regulation could be positive for communities in which the local car dealerships perhaps sponsor softball teams or booster clubs but on the flip side sometimes they band together to drive out other dealers in the interest of their own business so because of these three laws you are not able to buy a car directly from the manufacturer critics say these antiquated laws are restricting innovation and costing consumers more than they need to pay it helps maintain a business model that's older than the ghost in a jar someone say my name Oh ghost in a jar what's up dude not much Nolan how are you pretty good man looks like you've gained some weight huh thanks looks like you should hit the gym I have been yeah Bart looks pretty good these days I know your shows aren't really getting engaged what do you think about these regulations oh the regulations that guy's awesome we look at the car issues that affect you every week here on wheelhouse and hit that yellow subscribe button right there do you think we should be able to buy stuff directly from manufacturers or do you like haggling for car somebody will do it as a hobby speaking of Tesla we reviewed one check that out right here we also sent one to space you can watch that right here be nice see you next time