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I don’t think the legacy automakers can. They are in too deep with dealers.

Up to a new wave of automakers to take over.

In most states it's illegal

I don't think that is true anymore. https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes

The contracts that dealerships have with the manufacturers would most likely prevent direct sales. It’s still illegal in some states, but even in the ones where it’s legal, the dealers would sue them for massive damages if they try to invalidate their franchise agreements.

How are going to test drive cars then? You need dealers even when they're run by the manufacturer.