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Re:Tesla will close most of its stores and only sell cars on... by ocdtrekkie on Thursday February 28, 2019 @05:38PM (#19276041)
The incredible irony here, is that they could, you know, let other businesses operate the stores. They're called "dealerships".

Amazing when Silicon Valley discovers other businesses do things for a reason.

Re:Tesla will close most of its stores and only sell cars on... by goshx on Thursday February 28, 2019 @06:43PM (#19276575)
I really hope they never do that. Purchasing a Tesla 100% online was the best experience I ever had with a car company.

No sales gimmicks, no false advertisement, no BS back and forth, no wasted time, etc. That alone would be reason enough for me to buy even a Toyota from them.

Re:Tesla will close most of its stores and only sell cars on... by ceejayoz on Thursday February 28, 2019 @05:41PM (#19276063)
I'd vastly prefer buying a car at a fixed price online than go to a dealership.
Re:Tesla will close most of its stores and only sell cars on... by AJ007 on Thursday February 28, 2019 @06:02PM (#19276241)
I'm not sure if it has been fully appreciated how big of a differentiator this is for Tesla and how difficult it will be for the other auto-makers to shake the dealership model.
Re:Tesla will close most of its stores and only sell cars on... by tappaseater on Thursday February 28, 2019 @05:54PM (#19276185)
Having just purchased a Model 3 in December, I second this wholeheartedly. It was the best buying experience I've ever had.
Re:Tesla will close most of its stores and only sell cars on... by godzillabrennus on Thursday February 28, 2019 @06:08PM (#19276284)
Maybe switch the dealerships to rental outlets? Kind of like silvercar?

If I rent a Tesla then within 1 year of the rental I buy one then Tesla discounts my purchase the cost of a day of the rental.

It’d be a great strategy and cover the costs of the dealer network.

Re:Tesla will close most of its stores and only sell cars on... by Zanni on Thursday February 28, 2019 @06:16PM (#19276355)
That's a great idea. Hell, I just want to be able to rent a Tesla whenever I travel out of town.
Re:Tesla will close most of its stores and only sell cars on... by Someone1234 on Thursday February 28, 2019 @05:56PM (#19276205)
So do I.

Test-driving is the only reason dealerships even needs to exist. Unfortunately even most vehicle renters only stock a handful of models (typically less expensive trims).

Online sellers need to get together and open up test drive locations. They don't sell from there, just let you figure out what you'll order online.

Re:Tesla will close most of its stores and only sell cars on... by Hoasi on Thursday February 28, 2019 @05:52PM (#19276163)
Cutting the middlemen is always a good strategy when it works.
Re:Tesla will close most of its stores and only sell cars on... by rossdavidh on Thursday February 28, 2019 @06:19PM (#19276381)
...by the definition of "when it works".
Re:Tesla will close most of its stores and only sell cars on... by rcMgD2BwE72F on Friday March 01, 2019 @05:41AM (#19279385)
It already works great. Every Tesla owner I know purchased the car online after testing another friends' car.
Re:Tesla will close most of its stores and only sell cars on... by Kalium on Thursday February 28, 2019 @05:47PM (#19276119)
I believe they're trying to avoid all the tensions and pressures that come from dealing with a dealership network.
Re:Tesla will close most of its stores and only sell cars on... by macspoofing on Thursday February 28, 2019 @06:10PM (#19276307)
And yet I argue all this 'tension' is still preferable to an online-only store. There is just something about a physical location that evokes good customer service. Apple could also go online-only, and yet they aren't.
Re:Tesla will close most of its stores and only sell cars on... by Kalium on Thursday February 28, 2019 @06:52PM (#19276644)
There's also a lot of state-by-state regulation around dealerships. If cell phone sales were regulated like car sales are, Apple might seriously consider going online-only.
Re:Tesla will close most of its stores and only sell cars on... by AdrianB1 on Thursday February 28, 2019 @06:31PM (#19276472)
Apple has huge margins that allows them to do anything they want. For the $35,000 Tesla, cutting the stores is the way to be able to reach that selling price.
Re:Tesla will close most of its stores and only sell cars on... by seanmcdirmid on Thursday February 28, 2019 @06:26PM (#19276431)
Dealing with dealers is such a PITA though, they are mostly full of hidden tricks, and you really really have to be savvy to not get ripped off on something. I wish I could just buy the car I wanted without worry about any of that.

Dealers are like legacy taxis, just dying to be disrupted by something much better.

Re:Tesla will close most of its stores and only sell cars on... by wahern on Thursday February 28, 2019 @09:05PM (#19277379)
Does Tesla prevent third-party resellers? I don't think they could even if they wanted given property, contract, and consumer protection law.

What Tesla refuses to do is sell to the public for one price and to distribution channels for another, lower price.

If there's an unmet need with sufficient profit opportunity, the only thing possibly holding back entrepreneurs is supply.

Re:Tesla will close most of its stores and only sell cars on... by londons_explore on Thursday February 28, 2019 @10:13PM (#19277645)
Third party resellers can be effectively prevented by limiting the warranty and return policy to the original owner, which is a pretty common practice in many industries.
Re:Tesla will close most of its stores and only sell cars on... by wahern on Wednesday March 06, 2019 @01:57PM (#19321541)
That's more difficult to accomplish with consumer products. Consumer protection laws (legislative and, to an extent, common law) limit contractual flexibility in that regard. If you sell something to the general public, it can be difficult to discriminate "business" purchasers, which is why retail arbitrage has always been a thing--a legitimate and legal thing.

The usual way to discriminate is by selling to businesses through a separate distribution channel with separate contractual controls. But to convince businesses to purchase through that channel you either need to sell into the channel at a lower price or otherwise provide some value-add. But that's exactly what Tesla refuses to do--sell through multiple channels.

Re:Tesla will close most of its stores and only sell cars on... by slowmovintarget on Friday March 01, 2019 @04:45PM (#19285592)
They would still be playing in the the old guard's backyard. Now they'd have to worry about floor-space, and GM / Ford / Chrysler playing games with placement, or restricting which dealers can carry Teslas and which can't.

The fact that so many states have laws saying Tesla is not allowed to open a store is ridiculous.

Re:Tesla will close most of its stores and only sell cars on... by namlem on Friday March 01, 2019 @01:27PM (#19283805)
That's not going to work until there are all-electric dealerships. Dealers don't like to sell EVs because they require much less service.