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Does Tesla prevent third-party resellers? I don't think they could even if they wanted given property, contract, and consumer protection law. What Tesla refuse
by wahern 8y ago
Does Tesla prevent third-party resellers? I don't think they could even if they wanted given property, contract, and consumer protection law.
What Tesla refuses to do is sell to the public for one price and to distribution channels for another, lower price.
If there's an unmet need with sufficient profit opportunity, the only thing possibly holding back entrepreneurs is supply.
- londons_explore 8y agoThird party resellers can be effectively prevented by limiting the warranty and return policy to the original owner, which is a pretty common practice in many industries.
- wahern 8y agoThat's more difficult to accomplish with consumer products. Consumer protection laws (legislative and, to an extent, common law) limit contractual flexibility in that regard. If you sell something to the general public, it can be difficult to discriminate "business" purchasers, which is why retail arbitrage has always been a thing--a legitimate and legal thing. The usual way to discriminate is by selling to businesses through a separate distribution channel with separate contractual controls. But to convince businesses to purchase through that channel you either need to sell into the channel at a lower price or otherwise provide some value-add. But that's exactly what Tesla refuses to do--sell through multiple channels.