Is the SCTY/TSLA merger a brilliant way to direct sale in MI/TX/UT, etc?

[ImEric]

Something just hit me today. Musk is touting the savings of acquiring new Solar customers as one of the biggest benefits of this merger, but is it possible that both companies might benefit from this? Right now, in Texas, customers who come to a TeslaMotors Gallery can't learn anything about the car. Employees aren't allowed to give pricing or even direct potential customers to the website so they can purchase. They are only allowed to talk about the underlying technology in the cars and talk generally about the company. I think they can also discuss things like superchargers, charging in general, etc. With Tesla Energy, though, Tesla should be able to direct people to the website to purchase solar panels/power walls. They could even conceivably open up a "Tesla Store" in states that prohibit even modest galleries for Vehicles. They could talk about solar panels and direct people to the website for more info. They could talk about discounts/incentives offered for customers who purchase solar panels.

This might be a brilliant marketing move by the Tesla Motors team.

 

[TexasEV]

It's not true that customers "can't learn anything about the car" at a Tesla gallery in Texas. They can learn everything about the car. They can even test drive it after going through the formality of scheduling it through Tesla in California. They just don't buy it at the gallery.

 

[ImEric]

It's not true that customers "can't learn anything about the car" at a Tesla gallery in Texas. They can learn everything about the car. They can even test drive it after going through the formality of scheduling it through Tesla in California. They just don't buy it at the gallery.

You are correct. It should read "can't learn anything about *PURCHASING* the car."

... but the point still stands. This could be a fun workaround for Tesla. Though, I suppose they could just do that with powerwalls, too. They don't necessarily need a new product to do this.

 

[Kacey Green]

on the PDF released with this morning's call it shows a store in South Carolina, is this a future store or an error?

 

[Ryan MF]

... but the point still stands. This could be a fun workaround for Tesla. Though, I suppose they could just do that with powerwalls, too. They don't necessarily need a new product to do this.

Undoubtably this is exactly what they will do. It will be tough for auto dealer lobbies to pass laws restricting direct sales of solar panel and batteries. This is one more way Tesla is breaking the rules on what is an auto maker.

 

[alseTrick]

I think you have it backwards.

Tesla already has stores/galleries in every state that Solar City is in except New Mexico. Conversely, Tesla has stores/galleries in much of the midwest and southeast where Solar City has zero presence (per Tesla and Solar City "locations" maps).

Promoting/selling both vehicles and solar panel systems in dual storefronts/galleries will provide much more benefit to the Solar side than the vehicle side due to that reason. And no state is going to allow Tesla to sell vehicles now when they wouldn't before just because they can sell solar panels. Those are two completely unrelated industries in terms of government oversight and regulation.

In other words, so what if Tesla can't sell direct in some states yet? I believe they can still put up a storefront in all of them but Michigan. And a storefront where you can ask about the car and its technology and test drive it is far more visibility than Solar City has across much of the nation.

 

[TexasEV]

Here is another angle-- the 1500 employees Solar City would be hiring for its new facility in Buffslo, NY next year will now be Tesla employees. Once Tesla is seen as a large employer in the area, perhaps some New York politicians will soften their opposition to the company selling cars directly to consumers, and loosen the restriction on the number of stores and service centers thst Tesla can operate in the state.

 

[ImEric]

I think you have it backwards.

Tesla already has stores/galleries in every state that Solar City is in except New Mexico. Conversely, Tesla has stores/galleries in much of the midwest and southeast where Solar City has zero presence (per Tesla and Solar City "locations" maps).

Promoting/selling both vehicles and solar panel systems in dual storefronts/galleries will provide much more benefit to the Solar side than the vehicle side due to that reason. And no state is going to allow Tesla to sell vehicles now when they wouldn't before just because they can sell solar panels. Those are two completely unrelated industries in terms of government oversight and regulation.

In other words, so what if Tesla can't sell direct in some states yet? I believe they can still put up a storefront in all of them but Michigan. And a storefront where you can ask about the car and its technology and test drive it is far more visibility than Solar City has across much of the nation.

Perhaps I was unclear. I'm not saying "TeslaMotors is going to benefit because it's just going to pop up in all of the existing Solar City stores." I'm saying that there are places (Michigan, Arkansas, Alabama, for instance) where Tesla Motors wants to open up stores, but they cannot. Other places (I think VA and NJ, for instance) where they have a couple of stores, but are barred from opening any more than. However, I don't think Arkansas or Michigan have any rules against opening up a battery/solar panel store. So where "Tesla Motors" was restricted, "Tesla Energy" or just "Tesla" will be able to open a store. That gets their brand name in front of peoples' faces. In addition, in places where Tesla Motors isn't allowed to direct people to information about pricing/purchasing a vehicle, they'll be able to direct them to where they can find out all the information they need to know about Solar panels. And, of course, the site will have plenty of links to vehicle price/purchasing info. They've created a bit of a loophole.

 

[alseTrick]

Perhaps I was unclear. I'm not saying "TeslaMotors is going to benefit because it's just going to pop up in all of the existing Solar City stores." I'm saying that there are places (Michigan, Arkansas, Alabama, for instance) where Tesla Motors wants to open up stores, but they cannot. Other places (I think VA and NJ, for instance) where they have a couple of stores, but are barred from opening any more than. However, I don't think Arkansas or Michigan have any rules against opening up a battery/solar panel store. So where "Tesla Motors" was restricted, "Tesla Energy" or just "Tesla" will be able to open a store. That gets their brand name in front of peoples' faces. In addition, in places where Tesla Motors isn't allowed to direct people to information about pricing/purchasing a vehicle, they'll be able to direct them to where they can find out all the information they need to know about Solar panels. And, of course, the site will have plenty of links to vehicle price/purchasing info. They've created a bit of a loophole.

You were clear. I understood that.

And I responded: Tesla has a presence in more states than Solar City does, so while Tesla may benefit, Solar City stands to benefit significantly more.

 

[renim]

by this logic, Toyota could avoid using dealers anywhere they sell sewing machines.

and Honda, could avoid using dealers anywhere they sell lawnmowers.

and Hyundai, could sell anywhere they offer engineering services

and Mitsubishi.......

its normal for Asian car makers to be involved in non automotive industries. After all Toyota is just a sewing machine company that branched into automobiles....