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You make a valid point. In Musk's defense, I can't think of any car manufacturers that have used direct sales on this scale, so while the correlation does not p
by oddevan 13y ago
You make a valid point. In Musk's defense, I can't think of any car manufacturers that have used direct sales on this scale, so while the correlation does not prove causation here, it doesn't disprove it either. He seems to simply be stating that this aspect of their business model (direct sales) is a key part of Tesla's business and one that he believes is essential to its survival.
- gutnor 13y agoJust wondering though, what is preventing them to sell a franchise of Tesla and just provide the seller the appropriate incentive - like keep a fraction of the sales. I suppose they still have the right to put some restriction to the franchisee like they do in the food industry ( like you will not see a McDonald selling KFC )
- thenonsequitur 13y agoWhat's preventing them? If they did that, they'd have to give up a fraction of their sales. Also, it's not easy to set or agree on a commission percent when Tesla and the dealerships have such opposing interests to begin with. In other words, they are not trying this simply because selling direct is a better choice.