[car fanatics]

Source
Photo credit: Tesla Motors
June 8, 2012
By: CF staff

The new stores are owned by Tesla itself, and most states have laws that prohibit or restrict automakers from owning dealerships. In fact, laws in New York state expressly forbid it, said Leonard Bellavia, an attorney who specializes in working with auto dealers.

So far, no outside auto dealers have taken action against Tesla's stores on this basis, Bellavia said, but they should. While traditional dealers may not feel threatened because Tesla sells "niche" products, their stores could set a dangerous precedent should a major automaker decide to try the idea.

[AudiR8]

Why is having a store run by the company illegal?

[jspookss]

Price advantages. If you owned a store in the same town as Joe blow, how can he ever compete on price?