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Elon Musk: Auto Dealers Are ‘Perverting Democracy’ to Destroy Tesla and Hurt Customers

The CEO of the electric-car company speaks out in response to the growing list of states that have banned the company’s direct-to-customer sales model.
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Tesla was banned from using its direct-to-consumer sales model in New Jersey yesterday.

New Jersey joins Texas and Arizona as the third state to ban Tesla’s sales model. Ohio has legislation pending that would do the same thing, and other states have discussed similar measures.

Here’s how car sales work: An independent dealer sells the cars, not the car manufacturer. So a Toyota is sold by a dealer working with Toyota.

Tesla sells the car itself, much like Apple sells iPhones at its own Apple stores. In the current auto-dealer model, Apple would be forced to sell iPhones only through Best Buy and other retailers.

This issue has been lingering for a while. Musk made a great, impassioned speech last year on the topic.
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