1. United States
2. Pa.
3. Letter

Tesla must not be allowed to skirt state franchise laws that put our other American car manufacturers at a huge disadvantage. Our car dealerships support every aspect of the sale unlike Tesla, who is allowed to skirt all the rules. Why these measures need to be taken: Selling NEW cars online undermines the long-standing legal, regulatory, and economic frameworks designed to ensure fairness, accountability, and consumer protection in the automotive industry. 1. Consumer Protection and Local Accountability Franchise dealerships are licensed and regulated within each state, providing localized accountability. Consumers can deal with a physical location in case of warranty issues, lemon law claims, or disputes. Online-only sales make it harder for consumers to resolve problems quickly and locally. 2. Regulatory Oversight Dealers are subject to strict state oversight regarding advertising, pricing transparency, paperwork, and fair dealing. Direct online sales bypass or weaken these protections, making enforcement of consumer rights more difficult. 3. Market Structure and Fair Competition State franchise laws prevent vertical integration, where manufacturers control production and retail. Allowing Tesla to sell new cars online while other automakers must use independent dealers creates an uneven playing field. It could incentivize other manufacturers to abandon the franchise model, disrupting a structured and regulated market. 4. Protection of Local Economies and Jobs Franchise dealerships are major contributors to state and local economies, employing hundreds of thousands of people. Shifting to a direct-to-consumer online model threatens these jobs and undermines businesses that operate under current legal expectations. 5. Tax Collection and Compliance Licensed dealers handle vehicle titling registration and collect and remit sales tax in accordance with local law. With direct online sales, there are concerns about inconsistent compliance and potential loss of state tax revenue or DMV oversight. 6. Precedent and Industry Stability If Tesla can continue selling new cars directly online, it could set a precedent that could lead to widespread abandonment of the dealership model. This is a risk to industry stability, with long-term economic and regulatory consequences. Please protect the consumers in your state from the unfair business practices of Tesla.