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Why will TESLA not let me open a dealership?

Discussion in 'Tesla' started by number12, Dec 30, 2016.

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Should TESLA allow franchises?

  1. Yes

    4 vote(s)
    7.8%
  2. No

    43 vote(s)
    84.3%
  3. Maybe - depends on further regulation.

    4 vote(s)
    7.8%
  1. number12

    number12 Active Member

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  2. Saghost

    Saghost Active Member

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    As I understand it, if they open a single franchise anywhere, they come under franchise laws in a bunch of places, and have to start operating like a traditional car manufacturer, which increases their costs while decreasing their flexibility.
     
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  3. AB4EJ

    AB4EJ Member

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    Tesla currently started this strategy of owning its dealerships because they believed that typical dealers would not correctly represent and truly try to sell electric vehicles. Many people have said that dealerships of companies that sell EVs as well as ICE vehicles have been uninterested in selling EVs. (This was my experience at 2 different Nissan dealers when trying to buy a lease - they knew nothing about them, and probably only had on one the lot because the OEM pressured them to take one. This is not always the case, but I have heard this from numerous others).

    That said, this strategy is several years old now. If Tesla wanted to enable franchises, it could do so if it thought that to be strategically the right move. Some policies that would make this possible could be:

    • Require that the dealership be exclusively Tesla, and not handle any other brands (Mercedes does this).
    • Require that the dealership live up to corporate standards in all ways (done by many franchise corporations)
    • Include in the contract that the dealership property reverts to corporate ownership if the franchisee becomes bankrupt (done by certain motel chains)

    I did read the interesting quote: "As I understand it, if they open a single franchise anywhere, they come under franchise laws in a bunch of places, and have to start operating like a traditional car manufacturer, which increases their costs while decreasing their flexibility."

    There is a certain logic to this, but it doesn't really seem right, because franchise laws are state laws, and differ between states. More likely, the thinking is that if Tesla did allow franchises anywhere, that it would hurt their chances in the US Supreme Court case, which is where I am sure at least one of the pending Tesla lawsuits against the states will be headed.
     
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  4. AnxietyRanger

    AnxietyRanger Well-Known Member

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    By the way, Tesla has sold through dealers internationally. Not that its their goal (nor likely to have any bearing on U.S. law), just saying that they have.
     
  5. Bangor Bob

    Bangor Bob Member

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  6. number12

    number12 Active Member

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    That was my point. Me personally. I would be willing to open a "dealership" (as long as I do not have any inventory) and break even if I was given credits or discounts on Tesla's for myself.
     
  7. number12

    number12 Active Member

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  8. DÆrik

    DÆrik Member

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    That looks like one of their prototype cars. Look at the side mirrors.


    Btw, you can always just open your own gallery. ;) I'm well on my way! I'm happy to answer questions and offer test rides! I even have the same table and chairs as Tesla! Check it out!



    Thanks Erik
     
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  9. roblab

    roblab Active Member

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    I always thought that each owner is a dealer. I offer rides and drives, education, and can point you to my "inventory" on my computer. The main difference is that I don't have my car sitting on a lot. I'm driving it. And leaving people at the stoplight wondering why their car is so klutzy.

    Tesla's sales model (like their car) is so far ahead that people in Missouri can't understand it. In Columbia, in the center of the state, Joe Machens Ford owns all the dealerships, and another couple 30 miles south at the capital. They are able to lobby for their sales model, which incidentally is their fortune. The Missourians can't seem to understand that letting Joe retire would save them millions. I lived in MO for only about 20 years, so what do I know?
     
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