At the ethical level, this issue can be conceptualized in terms of the right of free association: as Koopman has suggested, Tesla could be called a "free market antihero," insofar as the company is advocating for the right of consumers to buy their cars in whatever ways they would like to buy their cars. Essentially, the current regulations follow the same logic as if the computer manufacturer Apple Inc. were told that it could only sell computers through third-party "dealers" and not through their own stores. Auto dealerships surely emerged at one point in time as a practical means through which the general public could access cars in an easy and reliable way. Now, though, the efforts of auto dealers to hold onto to their own power would seem to be undermining that very same consumer prerogative.
* I think the city air pollution advantage was kindof glossed over in the analysis. Even if a lot of emissions are not tailpipe, the tailpipe emissions are where people are, and thus they are far more important from an air quality perspective. And here, too, it’s not a good idea to compare pure BEVs to a new, perfectly tuned Priuses. With ICE cars, there will be a lot of cars that have overpowered engines that aren’t optimized for low emissions, and many of them will have some problems that make them emit far more soot and stuff than they should according to specs. With BEVs, it’s always zero tailpipe.