Re:Tesla will close most of its stores and only sell cars on...
by kristopolous on Thursday February 28, 2019 @06:35PM
(#19276507)
I'm pretty sure third party licensed sales operations will pop up.
It's a classic silicon valley style move on their part: get out of the games you don't want to be in. In this case, the business of car dealerships not being the same as the business of car manufacturing.
Besides, the long play of Tesla is likely not in Tesla branded cars at all. They are slowly making the IBM move where they own and license the tech that other companies rely on.
The legal responsibility of autonomous vehicles and the long term warranty responsibilities of batteries as they decrease in capacity sounds like a terrible business to be in.
A, say, Ford "with Tesla tech" is likely worth substantially more in the mind of the consumer then one without. Pushing off the responsibility of the first point of contact is invaluable for a scaled business.
The bigger market than your own line of cars is to make the parts that all cars use.
It's the best powerplay they have access to in the market position they've formed.
It's a classic silicon valley style move on their part: get out of the games you don't want to be in. In this case, the business of car dealerships not being the same as the business of car manufacturing.
Besides, the long play of Tesla is likely not in Tesla branded cars at all. They are slowly making the IBM move where they own and license the tech that other companies rely on.
The legal responsibility of autonomous vehicles and the long term warranty responsibilities of batteries as they decrease in capacity sounds like a terrible business to be in.
A, say, Ford "with Tesla tech" is likely worth substantially more in the mind of the consumer then one without. Pushing off the responsibility of the first point of contact is invaluable for a scaled business.
The bigger market than your own line of cars is to make the parts that all cars use.
It's the best powerplay they have access to in the market position they've formed.