How Dealership Laws Hinder EV Sales

Laws designed to protect car dealers against price competition from car manufacturers are, in many states, preventing electric car makers from selling directly to consumers.

2 minute read

February 6, 2022, 6:00 AM PST

By Diana Ionescu @aworkoffiction


Electric Cars

Sopotnicki / Shutterstock

In a piece in The Atlantic, Robinson Meyer calls out antitrust laws that protect U.S. car dealers from competition for preventing the more widespread adoption of electric vehicles. According to Meyer, more than half of U.S. states have laws that prevent automakers from selling directly to consumers—laws that Meyer calls "a major impediment to decarbonizing the American economy."

In 17 states, including Texas, Wisconsin, and Connecticut, laws forbid any automaker from opening a store and selling its vehicles directly to customers. Another 11 states, including New York, New Jersey, and Georgia, allow only one automaker, Tesla, to open stores and sell directly to state residents. If you want to buy a Ford truck, you have to go to a Ford dealership owned by a third-party company.

Meyer writes that restrictions on direct-to-consumer sales are crippling EV sales, pointing to the difference between New York, where the state offers plenty of incentives for buying EVs, with Florida, which does not offer the same benefits but, because of its more permissive dealership laws, saw twice as many electric car sales as New York in 2019 and 2020. Meanwhile, many traditional car dealerships are unprepared to sell EVs, lacking charging infrastructure or knowledgeable staff that can answer buyers' questions.

Now, three major electric car manufacturers have teamed up to wage the legal battles necessary to change these laws. Meanwhile, legacy carmakers are introducing more electric models, which dealerships will have to equip themselves to sell.

Friday, January 21, 2022 in The Atlantic

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

People walking in downtown St. Louis, walking past shops.

Move over, LA: St. Louis gears up for Olympics, invests millions in downtown redevelopment

The Missouri city will host the 2028 Olympic soccer group stage and knockout matches.

30 minutes ago - Smart Cities Dive

A swamp in South Carolina with tall pale trees and Spanish moss in the water.

Satanic place names

From streams and lakes to valleys and canyons, I mapped more than 1,000 places named after the Devil.

October 31 - The Daily Yonder

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters