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Dealerships also make most of their profit from the service departments which is why they don’t really like EVs. No longer do you need to go in every 3-6 months

• bluGill 2y ago
  Oil changes are a minority ofincome and the rest is far cars old enough that the owner is going to a third party mechanic.
  • Loudergood 2y ago
    They're a huge opportunity to upsell though. Especially to people who are likely to get out of warranty work done by the dealer.
• dangus 2y ago
  1. There are still service items on a Tesla that are relatively frequent. Tires rotated every 6,400 miles, brake calipers cleaned and lubricated yearly for northern climates with salted roads, cabin air filter changed every 2 years, and two other service items every 4 years. 2. This is technically a tangent to the issue at hand. If Tesla was a gasoline vehicle startup they would have the same incentives to avoid dealership franchises, perhaps an even stronger incentive. 3. The fact that vehicle service is the most profitable part of the business is a great argument for the dealership model. Tesla owning their own service centers means that they are directly incentivized not to fix reliability problems in their vehicles, while all the car companies who have to pay out dealerships to handle recalls and warranty claims have a direct incentive to produce a reliable vehicle. Lo and behold, Tesla is about halfway down the vehicle reliability list according to consumer reports. At least they're better than Chrysler?