Sources: Tesla Wants Back in Dealership Game, Seeks Loophole
Electrek reports Tesla CEO Elon Musk wants to open ‘Tesla Centers’ around the U.S., once again challenging rules against direct-to-consumer sales. Sources say the firm’s Electric division could provide a workaround.
Tesla CEO Elon Musk reportedly plans to erect “Tesla Centers” throughout the U.S. in a bid to move the electric carmaker closer to its 100,000-unit quarterly sales goal.
(Bobit) — Sources have told Electrek’s Fred Lampert that electric carmaker Tesla Inc. plans to open retail locations in every major U.S. metro market. The so-called “Tesla Centers” could open before the end of 2019.
The move would reverse a March decision to abandon any pretense of operating a network of physical showrooms. But it would be only the latest attempt by the California company and its CEO, Elon Musk, to skirt state-level laws restricting new-vehicle sales to independently owned and operated franchises.
Read: Musk Taunts Dealers as Tesla Shutters Stores
Last month, reports surfaced that Musk told employees the manufacturer’s current reliance on online ordering was unsustainable.
“Amazon would go bankrupt if they would have to wait for customers to be ready to take delivery before shipping,” Musk reportedly said in a conference call.
The latest news follows Tesla’s third-quarter sales report. The factory sold 97,000 vehicles worldwide, a record high but 3,000 short of its quarterly goal. Executives said those 3,000 units were ordered and ready to ship but logistical issues prevented them from reaching their buyers.
It is speculated Tesla Centers could ostensibly focus on the company’s Energy division and offer the option to learn more about and place orders for Tesla vehicles.
To solve that problem, Musk wants manufactured units to flow through delivery centers, sources say. But he would have to find a loophole to sell directly to consumers.
It is speculated Tesla Centers could ostensibly focus on the company’s Energy division, which produces solar panels, solar roofs, and the Powerwall home battery, and offer the option to learn more about and place orders for Tesla vehicles.
If those vehicles are held in inventory and delivered at Tesla Centers, a legal challenge from dealer associations will inevitably follow.
“We are getting information that shows Tesla is able to sustain some very strong demand right now and they are making moves to keep that going,” Lampert wrote. “… The automaker is going to focus its efforts on streamlining the delivery process and reducing lead times in order to try to achieve another delivery record this quarter.”
More Dealer Ops
Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →