Tesla Introduces "Telsa Centers" To Skirt Antiquated Dealership Restrictions

The demand was not there.

You can go to the mall on Sunday and buy almost anything, but you can't buy a car. 2020 is around the corner. Time for change. Lastly everything being open on Sunday's does not take anything away from you if you want to go to church in the morning and treat it as the Lord's day of rest. Your rights end where someone else's rights being.

The rules (and laws) don't apply to Musk -they are merely suggestions.

If Amazon which has the $$$$$$$$ and begins selling new cars online, Tesla can try to following in Amazon’s footsteps! Otherwise, Tesla is to small to fight the state based automobile associations. Amazon is in many states economy and has the political $$$$$$$$$$ to push to change the regulation on car buying.

Amazon is a terrible company

Didn't Tesla just close a bunch of their retail locations about 9 months ago and fire all the workers?

#Sh*tshow

Actually they only closed a handful of stores. They have more open today than at any point in the past, so they didn't go through with that plan at all. It was kind of a shitshow though as they dropped prices of all cars because of the plan to close stores, and then raised the prices halfway to the original level when they decided not to.

I find it ironic that most people on this site are anti-union (as I am), but unlike me they are fully supportive of these antiquated dealership laws.

Conventional dealers would greatly INCREASE Tesla's sales.

Find that unlikely at this point. Prices would be 5-10% higher and I don't think customers would get any additional value over the current stores and service centers.

Prices would likely be LOWER due to COMPETITION. And I agree: you don't think.

@MD- That is a no brainer. For me in the GTA the closest Tesla dealer is 27km away and would likely take much longer to get to due to traffic in the GTA. In contrast the local Toyota dealer is 6km away. And Acura, Audi, Mercedes are only a tad farther.

Prices can't be lowered below what the manufacturer sells them for to the dealerships, which is essentially what consumers are paying right now.

Adding dealers will most certainly not lower prices because it is an additional entity in the process that needs margin. Tesla still needs to compete with other automakers and that is the COMPETITION will keep their prices in check.

You're clearly someone who had swallowed Elon's BS. You also are pathetically ignorant about business.

Yes dealers need the profit margin, but Tesla PRICE FIXES currently so that means that they are getting the full profit they want--they are most decidedly NOT doing you any favors--and they are gouging you. Dealers would put that profit margin on the table for negotiation to a lower price. THAT'S how it works. Tesla just cash rapes you and then you're in your Stockholm Syndrome praising your rapist.

How can adding another layer to a distribution model possibly lower prices? It's bizarre and illogical thinking.

If true, one could make prices even lower by adding yet another layer of dealers who buy from the first dealers to sell to end consumers.

#SMH

@Mdarringer your premise would be true, if the product had no external competition. The fact of the matter is that auto industry is probably one of the most competitive out there, that is what keeps Teslas prices inline with the rest of the industry.

Does Tesla have a higher built in markup than other automakers, probably, but some of the savings from not using dealerships does benefit the customer. Tesla also is also able to maintain a streamlined sales operation, which is not universally obtainable once the sales process is handed over to dealers...some of whom who love to play games and try to rip people off.

It really is meaningless what Tesla does regarding its sales model. For the years when it was basically the only game in town - they could get away with anything.

Today - as more EVs are introduced to the Public - the lack of dealers in local areas will just be another nail in the coffin of Tesla. Add in that Tesla SUPPOSEDLY sets fixed prices - where local dealers will COMPETE for your money - and in two or three years - Tesla's sales model will be a major minus.

Dealers complete to maximize their margin over the invoice price, they will only on rare occasions offer prices less than what they pay for the cars. It's an extra layer of distribution that adds not a ton of value in a world of EVs and will add 0 value when AVs come around. Even Tesla plans to eventually stop selling cars and just rent AVs.