Exploring New Approaches to Get Dealers Into the EV Market

Automakers are exploring new approaches to get dealers to buy into the EV market, as the traditional franchise model poses an obstacle. In many states, it is difficult, if not illegal, for automakers to bypass franchised dealers and sell new vehicles directly to consumers. The regulations add another obstacle for EV makers to compete with Tesla ($TSLA@US), which has found workarounds to regulations to cut costs. Some, such as Honda ($HMC@Japan), are following Tesla’s lead by moving sales online. Ford ($F@US) is developing EV certification tiers while allowing dealers to opt out of selling electric vehicles.