Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Annelise Capossela/Axios

The auto industry is in the midst of the biggest transformation in a century, with cars one day running on electrons, not gasoline.

Why it matters: But it's not just the cars that are changing. How we buy and service them is being disrupted, too. Instead of selling cars through franchised dealers, emerging auto manufacturers want to sell electric vehicles direct to consumers, either online or in their own stores.

  • But that's illegal in more than half the states in America, which environmentalists and consumer groups argue is holding back EV adoption and keeping the U.S. from achieving emissions reduction goals.

What's happening: A coalition of EV companies and advocates is working state-by-state to overturn decades-old laws that prohibit car manufacturers from opening their own stores or service centers.

  • Tesla started the fight in 2014; now newcomers like Rivian, Lucid and Lordstown Motors are joining the effort, too.
  • "What did the global pandemic teach us? It's that people want a better way to buy a car," Rivian's vice president of public policy, James Chen, tells Axios.

Where it stands: At least 20 states allow EV manufacturers to sell directly to consumers, including California, Illinois and Florida. The latest was Colorado, which passed a law last March.

  • In eight other states, including New York, Tesla fought for an exemption from the franchise laws, but it doesn't apply to other EV manufacturers.
  • One of those states, Washington, took up a bill this week that would remove the restriction for all EV makers.
  • In Michigan, where Rivian is based, the rules are exceptionally twisted: EV makers can conduct "sales-like" activities at branded stores, but the actual sale — transfer of title — must take place in another state.
  • The remaining states, including Texas — where Tesla is building a new gigafactory — prohibit EV manufacturers from direct sales.

The big picture: The dealer franchise laws were passed in the 1950s to protect car dealers from having to compete with factory-owned stores.

  • As a result, carmakers like GM and Ford wholesale vehicles to independent dealers, who turn around and sell those cars to consumers at a markup.

What they're saying: EV startups don't want a middleman selling or servicing their high-tech products.

  • "We have a desire to have direct touch with our customers," says Rivian's Chen.
  • Neither does Lucid, which plans to sell its luxury EVs at company-owned "studios" or online. Cars would be picked up for service, or maintained by mobile service fleets.

The other side: "The direct-sales model wasn’t built to sell EVs," says Jared Allen, a spokesman for the National Automobile Dealers Association."

  • "It was built to limit competition for both sales and service by creating a vertical channel for manufacturing, sales and service that allows a single entity to control everything, including prices."

The intrigue: GM and Ford initially backed the dealers in their fight against Tesla, but now they have skin in the EV game, too.

  • GM says it aims to phase out gasoline vehicles by 2035 and Ford has a $500 million stake in Rivian.
  • Both companies are investing heavily in EV development and asking dealers to do the same to get their showrooms EV-ready.

What's needed: Daniel Crane, a University of Michigan professor tracking the issue suggests a legislative compromise.

  • Traditional cars could continue to be sold and serviced only by franchised dealers.
  • But EVs and future technologies could be sold directly by both legacy carmakers and startups.

Go deeper

1 hour ago - Health

Biden says it's "not the time to relax" after touring vaccination site

President Biden speaking after visiting a FEMA Covid-19 vaccination facility in Houston on Feb. 26. Photo: Mandel Ngan/AFP via Getty Images

President Biden said Friday that "it's not the time to relax" coronavirus mitigation efforts and warned that the number of cases and hospitalizations could rise again as new variants of the virus emerge.

Why it matters: Biden, who made the remarks after touring a vaccination site in Houston, echoed CDC director Rochelle Walensky, who said earlier on Friday that while the U.S. has seen a recent drop in cases and hospitalizations, "these declines follow the highest peak we have experienced in the pandemic."

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Health: Most COVID-19 survivors can weather risk of reinfection, study says — "Twindemic" averted as flu reports plummet amid coronavirus crisis
  2. Vaccine: FDA advisory panel endorses J&J COVID vaccine for emergency use — About 20% of U.S. adults have received first vaccine dose, White House says — New data reignites the debate over coronavirus vaccine strategy.
  3. Economy: What's really going on with the labor market.
  4. Local: All adult Minnesotans will likely be eligible for COVID-19 vaccine by summer — Another wealthy Florida community receives special access to COVID-19 vaccine.
  5. Sports: Poll weighs impact of athlete vaccination.

The week markets went wild

Illustration: Lazaro Gamio

The markets just closed out a manic week.

Why it matters: Outsized — and in some cases historic — moves were evident across the board.