[Poll] - Will online-sale only model succeed?

[ggnykk]

I personally think the online only model will be a massive fail. Here are some of the concerns that I have:

1. Where will customer go when they need to trade in their old car?

2. Who is going to handle the paper work with licensing/ registration/ loan and leasing documents from bank etc? Customer and Tesla have to mail this back and forth to each other through UPS or Fedex now?

3. Where will customer go to pick up their car? Tesla will deliver the car to customer at their residential address? If it is the case, it would end up to be hugely more expensive than the store model.

4. For customers who has never heard of Tesla (there are still tons of them), where will they go to see or sit inside a Tesla? Moving store away from shopping center/ high-foot traffic area will only make the brand awareness get worse over time.

5. Given the occasional horrible Tesla customer services that you hear all the time, even at its current store model (email being ignored, phone calls are answered but never get followed up and never do things that are promised), what will the online-sale experience be like? many times worse than the current situation?

 

[gnuarm]

I think it will fail, but I'm not very good at predicting long term changes in buying trends. I just can't see the mainstream population buying a very expensive and totally new type of auto the same way they buy light bulbs from China.

 

[OPRCE]

It does seem rather rash and precipitous to out of the blue announce closing most stores before even trialling the OLS model to iron out the kinks, of which I trust there will be a Tesla-typical super-abundance, and check if customers accept the experience.

In the mid-to-long term however I'm sure it can be made to work efficiently.

 

[gnuarm]

In the mid-to-long term however I'm sure it can be made to work efficiently.

We seem to be 180 degrees in opposition. I think this is a short term maneuver to get past a critical time where profits will be in short supply but demand will still be adequate due to the special nature of both Tesla the cars and Tesla the company.

In a couple of years when many automakers will have all-battery EVs to sell, I think Tesla will have to sell cars the same way everyone else does.

 

[Verdi]

I personally think the online only model will be a massive fail. Here are some of the concerns that I have:

1. Where will customer go when they need to trade in their old car?

2. Who is going to handle the paper work with licensing/ registration/ loan and leasing documents from bank etc? Customer and Tesla have to mail this back and forth to each other through UPS or Fedex now?

3. Where will customer go to pick up their car? Tesla will deliver the car to customer at their residential address? If it is the case, it would end up to be hugely more expensive than the store model.

4. For customers who has never heard of Tesla (there are still tons of them), where will they go to see or sit inside a Tesla? Moving store away from shopping center/ high-foot traffic area will only make the brand awareness get worse over time.

5. Given the occasional horrible Tesla customer services that you hear all the time, even at its current store model (email being ignored, phone calls are answered but never get followed up and never do things that are promised), what will the online-sale experience be like? many times worse than the current situation?

Here in Sweden we already go to the Service Centers to pick up the cars. But still, I'm afraid Tesla won't survive...

 

[P100D_Me]

It's really looking like they won't survive and the other stupid decision to drop S & X prices by 30% or so leaving so many feeling gutted who purchased a new Tesla in the last few years means no repeat customers.
I am totally sold on EV's after owning my Tesla, but my next EV won't be a Tesla.

 

[ewoodrick]

I'm not sure why this is really a question, Tesla has essentially ALWAYS been an online only ordering organization. Even when you go into a store, they just give you a web browser to go online to order.

1) You do it online, as has been the case.
2) You do it at the Delivery Center, as they've been doing
3) Either at the delivery center or delivered directly to your house.
4) I didn't sit in one before I ordered it.
5) The same as it is.

It is really obvious that you never have had any dealing with Tesla, VERY FEW people have a "store" near them. Remember, Tesla doesn't use dealers, there stores weren't dealers. The stores were only showrooms.

 

[svp6]

I have mixed feelings about the decision to close stores. It is true that ordering was always online - even in the store - but the only reason I got my first P85D was because the awesome salesperson taking the time to showcase the car. I did not sit in the model 3 before we got it delivered, but by then I already knew what to expect from Tesla. My guess is that online will work for returning customers, less so for first-time buyers. Will see.

 

[shellderp]

Most of your concerns haven't been confirmed. All they've said is you can only _buy_ online. Nothing about test drives, delivery, paperwork, service. They'll still have the cars on display in many "galleries". They're only called galleries cause you can't actually place orders there, it doesn't mean they'll change significantly

 

[Merrill]

I’m not sure what the concern is, we purchased our cars on line and picked up our S at the factory and our X at the service center. They will still have places to do a test drive.

 

[P100D_Me]

Read online - "Tesla says it will dismantle its physical stores", stores, galleries, whatever you want to call them, that to me says no cars available to test drive.

 

[thx1139]

I need to know when did Tesla really move away from the online way to purchase a Tesla? We have bought 2 and it was all online. Sure we took a peek in a gallery, but never worked with a salesperson. They even bragged that they werent sales people. You purchase the car online. What changed and when did it change? We bought our S in 2015 and our 3 last August.

 

[Big Dog]

1. Where will customer go when they need to trade in their old car?

2. Who is going to handle the paper work with licensing/ registration/ loan and leasing documents from bank etc? Customer and Tesla have to mail this back and forth to each other through UPS or Fedex now?

3. Where will customer go to pick up their car? Tesla will deliver the car to customer at their residential address? If it is the case, it would end up to be hugely more expensive than the store model.

4. For customers who has never heard of Tesla (there are still tons of them), where will they go to see or sit inside a Tesla? Moving store away from shopping center/ high-foot traffic area will only make the brand awareness get worse over time.

5. Given the occasional horrible Tesla customer services that you hear all the time, even at its current store model (email being ignored, phone calls are answered but never get followed up and never do things that are promised), what will the online-sale experience be like? many times worse than the current situation?

1. Service Center (which is where we in CA trade in/pick up).
2. I did 100% of both of my deals for M3 online. Just presented a net check from the bank upon pickup.
3. see number 1 above
4. Yup
5. Likely correct. Hopefully, Elon will take the opportunity to cull the herd of Solar sellers who know (almost) nothing about the cars, yet are always standing around the office to deliver them.

 

[PRJIM]

Looks like Tesla is gearing up for a subscription based model and trying to move away from purchasing cars, outright. In this scenario online only may work.

Seems like they did a ton of legal work though; to break through automotive sales barriers in many states. The way many of the laws were amended state that Tesla is the only car company allowed to sell direct to consumers in those states (physically). If delivery was a problem, they could easily rent a parking lot at a sporting venue and do mass deliveries/pickups every few days. Perhaps even pop up stores in these types of venues. I do think that expensive retail space is a waste of resources and not very scale able. Tesla must have the metrics, that these stores (through walk-ins) do not generate enough to keep them around in many locations.

 

[P100D_Me]

Look maybe it's a cultural difference between the USA and other countries on what buyers are happy with. Maybe if GM offered online sales then people would happily hand over $80K for a new Corvette without driving it because they know what they are getting rather than having to deal with the sales person wanting to up sell you with paint protection and leather protection at time of purchase.
But a Tesla is so different to everything else, I know I went to a 'gallery' to drive one before I purchased one, if you are spending that much money you need to know how it feels to drive surely?

 

[ggnykk]

It's really looking like they won't survive and the other stupid decision to drop S & X prices by 30% or so leaving so many feeling gutted who purchased a new Tesla in the last few years means no repeat customers.
I am totally sold on EV's after owning my Tesla, but my next EV won't be a Tesla.

Hmm...but price cuts is normal for any new technology products though. I know price cut sucks a lot for first adopter/ buyer, but if the prices don't come down, then the bottom 95% of the population can't afford the EV to help change the world.

 

[ggnykk]

I have mixed feelings about the decision to close stores. It is true that ordering was always online - even in the store - but the only reason I got my first P85D was because the awesome salesperson taking the time to showcase the car. I did not sit in the model 3 before we got it delivered, but by then I already knew what to expect from Tesla. My guess is that online will work for returning customers, less so for first-time buyers. Will see.

that's a good point

 

[ggnykk]

Looks like Tesla is gearing up for a subscription based model and trying to move away from purchasing cars, outright. In this scenario online only may work.

Seems like they did a ton of legal work though; to break through automotive sales barriers in many states. The way many of the laws were amended state that Tesla is the only car company allowed to sell direct to consumers in those states (physically). If delivery was a problem, they could easily rent a parking lot at a sporting venue and do mass deliveries/pickups every few days. Perhaps even pop up stores in these types of venues. I do think that expensive retail space is a waste of resources and not very scale able. Tesla must have the metrics, that these stores (through walk-ins) do not generate enough to keep them around in many locations.

I actually think Tesla announcing to the world that they are going to online-only sales would only make the dealership association join forces to stop all online-sales in all US states through legislation. Tesla should have transition to "online-only" model in "secrets" gradually in the next few years.

 

[mtndrew1]

This company changes VERY fast when something isn’t working or beneficial.

First of all I think a lot of readers are assuming that every single physical way to interact with these cars is going to vanish and that’s unlikely.

We know they’re winding down the sales arm but that doesn’t mean there will be no ability to test drive one of their cars. They certainly could have events or employees to bring a test drive car to your home or office. There are plenty of ways to allow people to get their butts in seats and/or take a spin around the block without having a retail presence.

As far as delivery and service go I don’t see how it’s changing at all. I presume the delivery centers will remain and home delivery will remain as they’ve always been and that’s how you’ll do the final interaction with your car.

I think a lot of people are extrapolating the announcement into something it’s not. If whatever they’ve initiated this week doesn’t work out, it will change again. Quickly.

 

[wjhepworth]

I'm not sure why this is really a question, Tesla has essentially ALWAYS been an online only ordering organization. Even when you go into a store, they just give you a web browser to go online to order.

1) You do it online, as has been the case.
2) You do it at the Delivery Center, as they've been doing
3) Either at the delivery center or delivered directly to your house.
4) I didn't sit in one before I ordered it.
5) The same as it is.

It is really obvious that you never have had any dealing with Tesla, VERY FEW people have a "store" near them. Remember, Tesla doesn't use dealers, there stores weren't dealers. The stores were only showrooms.

Amen. I never saw the purpose of the stores other than to say, cool, love to see Teslas.