Cars on demand don't prevent the manufacturer from having local warehouses to where they deliver ~300 cars every couple of months, so the energy expended doesn't really change, only who does the last-mile driving (new owner versus some employee). If anything, a warehouse will waste much less than a dealership holding the same number of cars.

As for it being a better use of people's time, if people are choosing the buy from the websites vis-a-vis going to dealerships, I'd say they have shown otherwise.

If you're suggesting that removing the sales staff, mechanic shop, and loud promotions from car dealerships would cut costs, I agree.

Perhaps we agree on all counts. I do not understand how a dealership and a local warehouse differ in a conversation about how to distribute auto inventory for sale.

Well, I guess the issue is that I didn't think that was the conversation we were having. cinskiy asked why would one need a dealership, when one can order directly from the manufacturer - this doesn't imply anything about the distribution of inventory, just how the sales process works.

The parent may have been referring to states with laws prohibiting Tesla from opening its own dealerships or selling directly to customers in those states.