EZZ

Tesla doesn't have a single franchise so the states are the only barriers propped up by Franchises that are terrified of Tesla. Just a matter of time before the archaic rules will be changed.

Toys4RJill

I don't think the rules will change. They are there to protect the dealers from the manufacturer.

EZZ

They may not allow manufacturers to sell direct if franchisers exist but they will allow direct sales if the manufacturers have no franchises. Tesla will eventually be allowed to sell in every state.

Toys4RJill

I am sure they will. Or perhaps Tesla will close up their retail locations and franchise out their retail operations. Tesla would raise an extraordinary amount of capital from franchising out. They can then focus on building cars and getting the cost and price points down. Most manufacturers (in any industry) and most retailers (in any industry) do not do both. Just my thoughts.

EZZ

Look at Tesla's history. They are pursuing a complete verticalization strategy. They even built out a battery factory so they wouldn't be reliant on downstream partners. Hell, they built out electric stations to supply power! They would rather not sell in the states that prohibit direct sales vs franchise. They will most definitely hold their course as the company's entire vision is based on verticalization.

mmarshall

Actually, Apple selling their products in those store-outlets increases, not decreases competition. I bought my Apple MacBook Air, several years ago, at Best Buy, and got a better deal there than I would have gotten in the Apple store...which, in some ways, is a rip off.


The Internet, and buying things on-line, is not the answer to everything.


Agreed. No one forces them to stay in that business. If Tesla wants to, they can simply get out of the auto business and concentrate on things like computer and battery hardware. But, if they want to sell autos, then they have to play by the rules.


Don't bet on it.

rogerh00

OK, just for my own clarity, one can order a Tesla in any State in the US via the web and have it delivered -correct?

We have a member here that just ordered a TM3 after test driving it! He's in Canada though so I suppose things are different there.

I recently found out there is a Tesla Service Center here in Tampa. I googled it and was able to drive by the shop and even look into the service bay and see a mechanic working on Tesla up on a lift. I was surprised to see maybe 30 Tesla's in the parking lot awaiting service.

EZZ

Look up Apples financials. They make a profit margin of greater than 25% due to their ability to set prices and sell direct. Look at all other phone manufacturers and they barely scrape 5% because they are beholden to Best Buy and other retail distributors. Tesla is chasing Apple, not crappy Nokia. I guarantee shareholders expect Tesla to hold course and sell direct. Their entire valuation is based on disruption and over time, voters will want Tesla in their cities. Over time, people will demand laws change and we will see Tesla direct sales in every state.

bitkahuna

iTrader: (20)

Alberta, BC, Ontario and Quebec have 'stores'... but assume you can order one from anywhere like in the u.s.
https://www.tesla.com/en_CA/findus/list/stores/canada

that is, i now read, correct. tesla/musk were sick of trying to get 'dealers' (meaning company owned stores) where you could actually order a tesla in many states that are blocking it, so he went direct. the company owned 'stores' now are basically information only, plus service, and you order the car online.

article on this:
https://www.statesman.com/news/20190...sh-in-question

mmarshall

The question now arises, though ......will those states that ban direct-company sales, and require official franchises, now allow on-line ordering and delivery in those states? Methinks not, although I will admit that a policy like that could be difficult to enforce without simply banning any more new Tesla registrations, period, in those states.

In either case, I don't see how Tesla can persist with the no-franchise policy forever. Day after day, it is causing no end to the company's problems. Sooner or later, Tesla will have to come out of the Dark Ages, stop being cave-dwellers, forget this direct-delivery nonsense, and get franchises.

EZZ

Oh the irony of calling a new business model that disrupts the entire industry something from the dark ages while saying the 100 year old business model that is so scared, it has to have government protection to save them is hilarious. Hahaha. To each his own.

mmarshall

When I said "Dark Ages", I was refering to the historical trend (which, BTW, Bob Lutz agrees with) that company-owned sales-outlets have never worked for any auto manufacturer on a large scale. There are reasons why franchises became the norm for auto-sales...it is virtually an economic necessity.

shadow1118

................

edit: wrong thread lmao

LeX2K

Tesla is already selling cars on a large scale I'd like to know why it won't scale up more.

bitkahuna

iTrader: (20)

they apparently are not blocking it, so apparently you can order a tesla online anywhere in the 50 states. Tesla just couldn’t operate a store, where you could order a car, in many states. So my thread title was off, i misunderstood. I’ll edit it...

Dark ages, cave-dwellers? I consider car dealers the dark ages.