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That it will eat into their margin is totally wrong. In fact, service and part supply are a huge reason mature car companies are profitable at all. Telsa cont
by panick21_ 4y ago
That it will eat into their margin is totally wrong.
In fact, service and part supply are a huge reason mature car companies are profitable at all.
Telsa controlling the both in house rather then sharing profits with dealers is a gigantic advantage.
The only problem is that while you are growing most of the cars are under warrenty most of the time. Therefore service is hugly negative. Tesla is only now getting to the point where service doesnt lose a huge amount of money.
So its literally the exact opposite of what you suggested.
The main reason Tesla has such problem is because of their growth. Any other startup car company even with dealer model would also face many of those challanges. But those companies wouldn't in the end get all the profits.