7 Ways Tesla Motors is Changing the Game

Riley Merkel, Contributor
October 22, 2012 | 2 Comments

3. The traditional dealership model is blown

The way car dealerships have always maintained their profits is through providing repairs and services for car owners and selling parts, something that takes place at the same location as the cars are sold. Tesla Motors, though, has taken the approach of opening showrooms in malls, where customers can learn about the cars and make reservations for their very own Tesla vehicle. The service centers are located miles away. Could this be the beginning of a new era of car dealerships?

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2 Comments

Walter J Smith
October 25, 2012

My 1959 VW BUG had a "front trunk," as VW Bugs had them for years before that! Innovation?

Then credit VW with that innovation, not Tesla.

On another note, maybe Tesla is wise to price its vehicles "above the market." After all, the way "the market" is going, we will all soon have to pay what a Tesla now costs for a Geo or a Mazda.

KIMBERLY (KIM) KING
October 24, 2012

I'm concerned the author of this read doesn't understand thermodynamics. Tesla sure is changing the game. They should start charging a lot more per vehicle if they plan on remaining in the game. Lithium ion batteries--expensive. I understand Tesla has tapped out its DoE funding. Lack of electricity infrastructure and expensive Li-ion batteries are putting a serious hurt on this industry. http://www.thestreet.com/story/11711435/1/why-merrill-lynch-morgan-stanley-are-wrong-about-tesla.html?puc=yahoo&cm_ven=YAHOO Back in August, Tesla is where A 123 was five months ago. A 123 filed for Chapter 11 Bankruptcy last week. Don't get me wrong. I'm all for new technologies, especially those of the renewable energy variety. However, more and more, I am having a difficult time with the green fashionistas undermining the science, and the lack of leadership supporting long term agreements--which only further foments distrust in the general public. Most folks do not understand it typically takes 10-15 years for a new technology to come to fruition, because of the ebb and flow of new prime movers, innovative clusters and business development cycles. I think the leadership in the USA fails to adequately inform the public on this timeline, instead of touting and pressuring new technologies to deliver on a short-term. Fisker, Solyndra, A 123. This industry cannot afford another casualty, but I'm afraid Tesla Motors is not far off. http://dealbook.nytimes.com/2012/10/05/cash-flows-are-critical-for-tesla/ http://www.businessweek.com/news/2012-10-23/dealer-group-leaving-tesla-retail-challenge-to-states