They overlook the fact that if you want to register your Tesla in MI you will still have to pay the same sales tax.
Most states do have strong laws protecting the rights of Dealers..from the consumers and from the manufacturers. They are a powerful lobby just like real estate brokers.
About a decade ago, my dad had some issue with a $35k pick-up he had and I went with him to the dealer. Was going to be fixed, but the short line of conversation with the operations chief at the dealer led to several interesting comments.
The dealer had their lobbyist at the state-level, and dealt with both political parties. The dealer also had various real estate deals and business investment opportunities that he was involved in. To generate the cash to make the lobbyist work at the level required, and to make the political guys happy....the dealer needed to generate X amount of income per year, to cover “his people”.
It’s a mafia operation, from top to bottom, if you define the whole meaning of the word. Both parties need the gimmick to continue, and Telsa’s method would destroy the whole gimmick over a decade or two.
Within two decades....a guy will be able to pick a very unique body for his vehicle, with his personalized choice of engine, and order this via an office at the local mall. You can see the customizing trend going on currently. It’s only a matter of time before dealerships are stamped “obsolete”.