An automotive monopolist’s worst nightmare.

Two big Silicon Valley companies are busy disrupting state-sponsored transportation monopolies. Uber is competing with locally regulated taxi companies, and Tesla wants to sell its electric cars directly to the public instead of through state-protected dealerships. Different issues arise in each case, but because competition is a good thing, both of these disrupters deserve to succeed.

Most states have laws that prevent auto manufacturers from selling straight to consumers, but Tesla has been sidestepping the rules by setting up showrooms that let consumers place orders over the Internet. The dealers don’t care much about Tesla — its share of the market is tiny — but they’re scared stiff that bigger producers will follow its example. So they should be.

Read the full article at Insurance Journal



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