It's one step more complicated than that. GM has 5 year renewable franchises, so theoretically they could just wait 5 years and not renew.

The issue is that many states have laws preventing OEMs from selling directly.

There are similar laws for unions.

I feel the laws preventing OEMS selling directly are antiquated. Dealerships are a scam. It's a game of "how much can i squeeze out of the other party" - which generally is bad for consumers. Since most aren't trained to take advantage. OEM's don't need to sell directly, but allowing a "store" model where prices are fixed, non negotiable would likely be best for everyone in the long run. Well, except for the dealers. But at least there would be predictability. Dealers shouldn't be a protected party - the consumer should be.

The laws are intended to protect the consumer by making sure there are physical places that can repair your car in the state. The question is whether that's necessary any more.

Yes, but that has nothing to do with dealerships as a POS location. Tesla should be able to have a store, and be regulated to make sure it provides service locations for vehicles.

Sure, if you answer the first question with "yes there needs to be physical service points in the state". I believe some people think this is unnecessary altogether though, so they argue for scrapping the entire law instead of changing it to allow for new ways of meeting the same goal.