Could Tesla survive outside the US market?

[mikec157]

Hi,

I have not seen this discussed so I figured I would join to post this question.

Assuming Tesla does not win the fight against the dealerships (which i find hard to imagine), and given that I don't think Musk would cave and employ a franchise for Tesla sales, my question is:

Does Tesla have a valid buisnes model if they were to export 100% of the cars overseas?

My feeling is yes. Given the gas prices in Europe, and the green lobby, I can see Tesla selling all the cars they can make. Obviously I hope this never happens, especially as I moved from Europe to the US and would like to own a Tesla one day.

I admit to knowing nothing about global business, but now the car is out of the bag, so to speak, if the USA wont accept it, I am sure the rest of the world will.

Mike

 

[dsm363]

I hope that never happens but think they could survive. It would make much more sense to move the factory over to Europe in that case though.

 

[Right_Said_Fred]

If, in the end, the choice is between stopping sales in the US or using the dealer model, then Tesla will choose the dealer model. No doubt. But it won't be necessary; I'm convinced they will succesfully face this challenge.

 

[dsm363]

If, in the end, the choice is between stopping sales in the US or using the dealer model, then Tesla will choose the dealer model. No doubt. But it won't be necessary; I'm convinced they will succesfully face this challenge.

If Tesla can sell cars in the US without the dealership model for long enough to gain traction, stopping sales for a year in the US and advertising why they are doing so could lead to significant backlash and get things changed. Tesla would likely have to have already delivered hundreds of thousands of cars by that point I'd guess so a long ways off.

 

[mikec157]

If Tesla can sell cars in the US without the dealership model for long enough to gain traction, stopping sales for a year in the US and advertising why they are doing so could lead to significant backlash and get things changed. Tesla would likely have to have already delivered hundreds of thousands of cars by that point I'd guess so a long ways off.

Lets hope we never find out :smile: I may be optimistic, but given the profile of the company in the media these days, I would think that Tesla will soon win enough public opinion that the dealers have almost lost the fight already.

 

[richkae]

If there is a war, Tesla will never lose the battle in their home state.
I would put almost zero chance on losing any of the west coast states.
I think that Tesla could survive just selling cars in those three states - but I think it is unlikely that they lose more than 4 or 5 other states.

 

[jerry33]

Those that want a Tesla will find a way to get them regardless of what state they live in. In Texas there is just no problem, and it's a better experience than any Texas dealership I've been to. However, my understanding is that the premium/luxury car market is three times a big in Europe than it is in the U.S. so I don't foresee any particular problems for Tesla being able to stay viable.

 

[Bubba]

Those that want a Tesla will find a way to get them regardless of what state they live in. In Texas there is just no problem, and it's a better experience than any Texas dealership I've been to. However, my understanding is that the premium/luxury car market is three times a big in Europe than it is in the U.S. so I don't foresee any particular problems for Tesla being able to stay viable.

Texas Model S owners are getting them, it is just more paperwork for them.

Elon estimated that they hurdles in Texas have likely cost them about half the sales they would have done in Texas if they could just sell direct.

 

[MikeN13]

Keep in mind that Tesla can sell without issues in most states. Only a handful of states are trying to force the adoption of independent dealers. I like Tesla's initial response: "You are worried about manufacturers competing with dealers? We promise, we will not compete against any dealers."

 

[ifung90]

Elon in his visit to Hong Kong said Hong Kong is their most densely populated market based on tesla per square feet.

there are also 3000 tesla in Hong Kong since 2013. And we are a tiny city.

 

[ItsNotAboutTheMoney]

It's really a pointless question since CA has no signs of changing anything.

The real problem in other states would be rules as in MI that ban manufacturer service centers. That's why Tesla is choosing to mount a legal challenge there.