Photo: Tesla
It's been a few days since the highly-publicized Tesla Motors vs National Automobile Dealers Association match put a halt on direct-to-consumers sales of the Model S in Michigan. Still, voices in the industry hint that the EV automaker is going to embrace franchising to get around this troublesome setback.
In an interview with news publication Autoline Daily, Tesla Motors extraordinaire Elon Musk declared that "We [Tesla] need a hybrid system with a combination of our own stores and some dealer franchises." Take that, Michigan Gov. Rick Snyder and House Bill 5606! Nonetheless, let's not get ahead of ourselves just yet.
Tesla electric vehicles are niche products in an already niche automotive segment. Including the $7,500 incentives package, a basic 60 kWh Model S will set you back over $60,000 in the United States. Now imagine how that entry-level sticker price would look like after you add the various taxes and fees of a franchised dealership.
With a franchised dealer, Tesla doesn't have direct control over the mechanic's ability or an ordinary respray job's finish quality. That translates to a lot of unhappy owners bitching on Tesla forums about how franchised dealer X or franchised dealer Y are not a serious bunch. By adopting this sales system, Musk's revolutionary way of flipping the bird in the face traditional dealerships will be all in vain.
We really wonder what's your take on this - if Tesla Motors sells out due to company shareholders' pressure to meet that sales and profitability threshold, will this have an impact on customer satisfaction?
Tesla electric vehicles are niche products in an already niche automotive segment. Including the $7,500 incentives package, a basic 60 kWh Model S will set you back over $60,000 in the United States. Now imagine how that entry-level sticker price would look like after you add the various taxes and fees of a franchised dealership.
Franchising would expand Tesla's presence and sales volume worldwide, but...
...the biggest drawback will be a slight price hike over vehicles sold in a direct-to-customer manner. To boot, there's another, less obvious drawback to give franchising the green light - the franchised dealer's service department. Let me explain - a normal Tesla store is controlled in the most minor of details by the bigwigs in Palo Alto. Those details also include the service technician's ability to service a Model S.With a franchised dealer, Tesla doesn't have direct control over the mechanic's ability or an ordinary respray job's finish quality. That translates to a lot of unhappy owners bitching on Tesla forums about how franchised dealer X or franchised dealer Y are not a serious bunch. By adopting this sales system, Musk's revolutionary way of flipping the bird in the face traditional dealerships will be all in vain.
We really wonder what's your take on this - if Tesla Motors sells out due to company shareholders' pressure to meet that sales and profitability threshold, will this have an impact on customer satisfaction?
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