Inside EVs has a nice write-up of Elon Musk's appearance in Texas to lobby for an exception to that state's dealer franchise laws.
Musk said that selling direct is "life or death" for Tesla.
But is it really "life or death" that Tesla sell in Texas? With all of the other states he could be in?
But is it really "life or death" that Tesla sell in Texas? With all of the other states he could be in?
Perhaps he meant that that selling his cars direct to customers is "life or death", but I wonder about that too.
If Teslas are profitable cars with solid demand, then dealerships should be able to sell them and make money, and Tesla should be able to make money. After all, that's how everyone else does it, from tiny Mitsubishi (surprisingly) to the big boys.
Smaller volume players, like Lamborghini, Fiat, or Smart, either use multi-brand dealers, or small boutique shops to market their product. How is Tesla fundamentally different from a small volume sports car brand?
Smaller volume players, like Lamborghini, Fiat, or Smart, either use multi-brand dealers, or small boutique shops to market their product. How is Tesla fundamentally different from a small volume sports car brand?
If Tesla can't survive without eating the margin that would normally go to a dealer, what does that tell us about the strength of their market?
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