What unique retail strategy did Tesla implement that broke from traditional automotive industry practice and faced legal challenges in numerous U.S. states?

Tesla Motors revolutionized not just electric vehicles but also how cars are sold to consumers. Unlike traditional auto manufacturers who rely on franchised dealerships, Tesla pioneered a direct-to-consumer retail model in the transportation industry. This strategy eliminated the middleman but also sparked legal battles across multiple states with established dealer networks. Test your knowledge about Tesla's innovative retail approach that changed the automotive retail landscape forever.

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Direct-to-consumer sales model with company-owned showrooms, bypassing the traditional dealership franchise system
Subscription-based vehicle ownership with monthly payments that include all maintenance and insurance costs
Online-only sales platform with home delivery and a 30-day return policy, eliminating physical retail locations entirely
Membership-based retail clubs where consumers pay annual fees for access to exclusive vehicle purchasing opportunities