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To some extent, the 1900s distribution model of dealerships is a burden. When you buy a tesla, tesla gets 100% of the revenue. When you buy a VW or a ford, wh
by brianwawok 6y ago
To some extent, the 1900s distribution model of dealerships is a burden.
When you buy a tesla, tesla gets 100% of the revenue.
When you buy a VW or a ford, what % cut does the dealership take?
How much does it cost to have 800 cars sitting on a lot, vs order on demand?
Auto industry is ripe for innovation, glad we have someone innovating. I will hopefully never need to talk to a car salesmen or do the dealership thing again.
- philwelch 6y agoTesla also has to operate local showrooms and sales outlets throughout the world. In order to match a full scale manufacturer, they would need outlets in every medium-sized rural town in the US. It’s not an issue for Tesla now because they have outlets in big city tech hubs, but that won’t be sufficient unless they’re content staying a high end luxury brand. Dealerships run on lower and lower margins these days so there isn’t really that much to gain. It’s effectively the same reason that restaurant and fast food chains almost universally adopt a franchise model.