• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Near Death Experience? Tesla vs Auto Dealerships

joe.pistell

Uncle Joe
Apr 7, 2009
4,076
1,585
First Name
Joe
Woa. This 5yr old post is spooky.
  • Iconic Michigan just settled with Tesla, Tesla now is selling & servicing direct there.
  • Tesla is now valued more than GM and Ford TIMES TWO...
  • The Superbowl TV ads were filled with EVs
We've not yet seen...
  • OEMs try to invent a new company and sell direct
  • Overseas Auto giants like Tata, Chery or Greely have not come to USA yet
This comment still rings true for 2020:
"This is an epic battle that you'll tell your grandkids. No need to stress, there's not a thing you can do but watch it all unfold over the next 5 years:popcorn:"

Should Elon Musk win, the dealer business (as we know it) will forever change.

Why? How? Let's follow the money...

#1) Tesla establishes a factory direct retail model (ala Apple)
#2) Wall Street money loves success from disruption. Wall Street investors reward TSLA (IPO at $19, 4yrs later now $240)
#2a) Money is power. Wall Street loves $TSLA so much, it's valued at 50% of GM's valuation
#2b) Wall Street expects Tesla will take this to the Federal Courts*
#3) If Tesla wins, they'll throw money at other players** to come and sell direct.
#4). OEMs will work hard at breaking off and selling direct (BMW & MB experimenting)

This is an epic battle that you'll tell your grandkids. No need to stress, there's not a thing you can do but watch it all unfold over the next 5 years:popcorn:

*“If we’re seeing nonstop battles at the state level, rather than fight twenty different state battles, I’d rather fight one federal battle.” Amy Wilson, Tesla’s Musk: I’ll Take Store Fight Federal, Automotive News, Apr. 15, 2013. [link]



**A few giant players: TATA motors of India from China big players there is Chery, Greely, Chang'an (Imagine a brand new sedan for $9,990) Chinese Carmakers Go Global - Forbes
 
Last edited:
  • 1Like
Reactions: Anthony G.

Chris Cachor

3rd Base Coach
Apr 29, 2011
439
206
First Name
Chris
Overseas Auto giants like Tata, Chery or Greely have not come to USA yet

Byton is inking deals with large dealer groups (Penske rumored) to bring a hybrid "showroom" model to dealers. However, AFAIK they aren't selling the M-BYTE in the US yet. It is an interesting development, for sure.

I personally think Tesla would be doing itself a favor by franchising. They're relatively low volume and service/parts are major problems, deliveries are a problem, capex is a problem.

 
Last edited:
  • 1Like
Reactions: craigh