Sigh
Nobody is saying that there can't be franchised dealerships. If that is the way a company wants to organize its distribution chain, fine..
The issue is that car dealers, slimebags that they are, are trying to use the legal system to force all businesses, whether they want to organize that way or not, to follow that model.
The reason for this is quite clear (at least to me it is), and it has nothing, absolutely nothing to do with any altruistic purpose (keeping costs down, protecting the customer, or some such bullshit). Its all about using the force of government to protect their racket. They realize, quite accurately, that Tesla's model would threaten to remove a lot of the zero-value-add profit that gets extracted by the dealer from the consumer.
It's not a hard point to understand, unless you are determined not to understand it.