CA-based Tesla's fight with America's car dealers (sales, 2013)

[18Montclair]

Interesting.

Tesla takes on America's car dealers - May. 20, 2013

[Ruth4Truth]

Maybe dealerships will appear who specialize in electric cars. That would eliminate Tesla's concern that dealerships that sell mostly gas-guzzlers wouldn't represent an electric car well. (Sounds like a bogus argument. Any dealer would kill to have a hot seller like Tesla.)

Doesn't Apple only sell through its own stores? No one seems to have a problem with that. Tesla's doing the same, but with cars. Highly computerized cars.

[jm1982]

The tesla is an interesting product and company

Apple does also sell their products in other stores best but and target.

But That might just be iPads and iPods, iphones. Which is a lot of their sales nowadays

For their laptops and desktops I'm not sure

[Ruth4Truth]

Originally Posted by jm1982

For their laptops and desktops I'm not sure

They used to sell their laptops and desktops only through their own stores. I remember, now. A few years ago, though, they started selling them through university book stores, at a discount to students, faculty and staff. I don't know if those are the latest models, though, or if they're unsold inventory from a previous model year. In any case, they still control sales for those products.

I think car dealers are right to be worried, though. If this direct sales concept takes off, it could mean the beginning of the end for the car dealership business.

[jeremy2788]

Don't auto manufacturers already have buy from the factory programs? Isn't that what Tesla wants to do, except they wont have dealerships like the other manufacturers?

[Ruth4Truth]

Tesla to issue more stock in order to pay off DOE start-up loan

Tesla Motors to issue more stock, pay off Energy department - CSMonitor.com

[hoffdano]

I am sympathetic to what Tesla wants to do. They want more control over the sale of their cars than they can probably get selling through franchised car dealers. It isn't that Tesla doesn't want dealers. They just want to own the entire dealer.

Car dealers are a powerful business lobby in most states. Most states have a variety of laws on the books that protect that business model. Just like they have laws that control how alcohol is sold. Or how beer is distributed.

I think the CEO is wrong about one thing though. He seems to think dealers won't give his electric car fair shake on the lot compared to gasoline cars. That's ridiculous. Every dealer in the US would love to carry a $80K car that is selling as fast as they can make them. That it is electric doesn't matter much.

All of these protections are restraint of trade to me. But this is everywhere. Apple sets selling prices. Any dealer selling Apple can't discount off MSRP any meaningful amount. If they violate their agreement with Apple they get punished.

[bigdaddy5]

400 HP, 0-60 in 4 seconds.

I wish I could afford one. The $500 lease offer sounds enticing, though.

[ZorbaTheGeek]

Even if you could afford one, like save up for years, what would maintenance cost? How expensive are parts? Does anyone here actually own one? We need hard info.

[Think4Yourself]

Originally Posted by jeremy2788

Don't auto manufacturers already have buy from the factory programs? Isn't that what Tesla wants to do, except they wont have dealerships like the other manufacturers?

It depends on the state. Some states, like Texas, have extremely restrictive laws which block consumer choices mostly (exclusively really) because auto deal lobbyist groups have bribed the state legislature to give them special carve outs.

Remember that next time conservatives claim to be for small government because they aren't.