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Here is one thing I just don't understand about these laws. I know they're setup to protect dealerships, but can't Elon Musk spin off a side company that is ba
by rdudek 12y ago
Here is one thing I just don't understand about these laws. I know they're setup to protect dealerships, but can't Elon Musk spin off a side company that is basically a car dealership company only?
- tedunangst 12y agoUsually the law requires two things. Separate ownership: musk couldn't own both. Open access: anyone must be allowed to open a tesla dealership.
- EGreg 12y agoSo the other Tesla dealerships would have to make minimal profit same as Musk's dealership. How is this different than Dell disrupting PC sales 20 years ago?
- goatforce5 12y agoThe difference is there weren't a bunch of laws in place to protect PC dealers.
- tedunangst 12y agoOther way around. Right now, every tesla sold sells for MSRP. If independent dealerships could purchase at wholesale prices, they'd be able to undercut tesla by selling for less than MSRP.
- ceejayoz 12y agoThey could presumably enforce on a franchise level salaries instead of commission and fixed pricing, though. That'd address most of the problems in dealerships.
- frogpelt 12y agoThe hard part is convincing people to sell Teslas with those types of restrictions. I'm guessing Tesla wouldn't be near as successful without the direct-to-consumer model.
- Crito 12y agoApparently one of Tesla's concerns is that they do not want their cars to be sold by anybody who also sells other cars. They don't think that electric cars will be treated fairly by sales staff that also have the opportunity to sell ICE cars. Maybe they could put terms into their hypothetical franchise setup to forbid franchises from also being dealers for other companies, or sharing sales staff/floor space with another dealership. I'm not sure about that though.