Tesla maintains that, to properly explain to their customers the advantages their cars have over "traditional" vehicles with an internal combustion engine, they cannot rely on third-party dealerships to handle their sales.

The high degree is rare in the automotive industry, where companies typically focus on engine manufacturing and vehicle assembly, outsourcing 80%[4] of components to suppliers while letting franchises serve as sales points.

[7][8][2] Tesla states that owning stores "creates an information loop from our customers straight into manufacturing and vehicle design".

[15][16][17][better source needed] Tesla has a low budget for marketing, and uses a referral program and word of mouth to attract buyers.

Tesla has set up mobile-shipping-container "stores"[9] and 6 Airstream travel trailers each pulled by a Model X, reaching areas not served by brick-and-mortar shops.

[26][27] Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the US vehicle marketplace.

[41] The Federal Trade Commission recommends allowing direct manufacturer sales,[42][43] which a 2000 report by a Goldman Sachs analyst projected would save consumers an average of $2,225 on a $26,000 car.

2006 New Mexico Statutes, Section 57-16-5-V prohibits manufacturers like Tesla to be licensed as a dealer, directly or indirectly performing warranty or other services.

[53] In August 2021 Tesla opened their first store and service center in the state on Nambé Pueblo tribal land north of Santa Fe.

A second store and service center north of Albuquerque on Santa Ana Pueblo tribal land opened on June 1, 2023.

[65] However, that service center may not be able to perform warranty repairs after Tesla saw a lawsuit against the state of Louisiana thrown out of federal court.

Tesla recently added the ability to include tax, title, license, and registration in the sale price of the car so the purchaser doesn't have to pay that separately once they receive the vehicle.

[77] Tesla has recently opened a service center in Lincoln, but LB891, introduced by Carolyn Bosn, would force it to close if passed in its original form.

In April 2021, Governor Asa Hutchinson signed HB1922, which amended the existing franchise law to explicitly prohibit direct leasing.

Tesla opened a store at the Mohegan Sun casino in late 2023, utilizing the tribal land loophole as in New Mexico.

In May 2015, Maryland approved, through House Bill 235,[100] direct Tesla sales to customers beginning in October 2015, though limiting the statewide number of stores to only four.

The legislation was crafted specifically for Tesla and allows only four manufacturers of electric or non-fossil fuel burning vehicles without existing franchisees to be licensed to sell direct to the public.

[101][102] In Virginia Tesla has obtained license from the Department of Motor Vehicles (DMV) for a single direct sales dealership (Tysons Corner).

[107][108] In July 2021, Tesla won approval from the Virginia Department of Motor Vehicles to open three new stores in Charlottesville, Norfolk and Arlington.

[109] On March 10, 2014, it was announced that New Jersey Motor Vehicle Commission and Governor Chris Christie's administration would be holding a meeting to pass a new proposal into law.

Tesla responded by saying that the proposal "seeks to impose stringent licensing rules that would, among other things, require all new motor vehicles to be sold through middlemen and block Tesla's direct sales model", and that "[Governor Christie's] Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey.

Diarmuid O'Connell, Tesla Vice President of Business Development, said, "Worse, it has done so without any reasonable notice or even a public hearing.

"[111] Forbes contributor Mark Rogosky said, "The state's new rules protect its auto dealers from having to compete with Tesla's direct sales model"; he points out that this is a direct contrast from what Christie said earlier, "We are for a free-market society that allows your effort and ingenuity to determine your success, not the cold, hard hand of the government.

"[112] Kevin Roberts, a spokesman for the Christie administration, responded by saying "it was the [Tesla Motors] company, not the governor's office, that was attempting to bypass normal procedures.".

[110][113] In March 2015, a new state law was signed allowing zero-emission vehicle manufacturers to sell at up to four locations and requiring a minimum of one service center.

[123] In July 2019 a bill was passed allowing Tesla to operate a maximum of six stores, unlimited galleries and repair centers.

[126] In 2013, New Hampshire passed legislation to allow auto manufacturers with no existing franchise dealer in the state to engage in direct sales.

[148] In December 2017, Tesla was granted a license by the state of Rhode Island after DMV lawyers concluded that the law blocking direct auto sales only applied to manufacturers that have franchise dealers.

[151] As of March 21, 2018, Utah Governor Herbert signed a bill into law allowing Tesla direct sales in the state.

One performed by the environmental organization Sierra Club found that in 14% of traditional dealerships, their electric cars were not charged to test drive, and 33% did not discuss the $7,500 Federal tax credits.