State Dealer Laws as Market Chokepoints

State franchised‑dealer statutes act as regulatory choke points that incumbents use to block new auto sales models; EV startups like Rivian and Lucid are testing and overturning those limits by threatening ballot measures and winning targeted carve‑outs. The Washington deal shows a political playbook: threaten popular ballot initiatives, extract a narrow legislative exception, and accept rules that lock in protections for incumbents going forward. — This dynamic reshapes how cars are sold across the U.S., affecting competition, consumer choice, dealership jobs, and how states balance small‑business protection with market entry for new technologies.