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Not that this is an immediate risk for Lithia, but the industry may move in that direction over the long run. Sure, states (like Texas, Michigan, Missouri) have ruled against Tesla, but the important point here is that Tesla succeeded in starting the discussion. While I don’t think the well protected new car dealership model will change tomorrow, I think it may change over the next decade or so, and this change will likely have a significantly negative impact on Lithia Motors and its peers if dealerships no longer have mini monopolies or end up competing against OEMs.
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