[btilly]

Tesla aims to have razor thin margins for the thing that they actually produce. So their lack of dealers who supply an automatic mark-up is something that they cite as a strength, not a weakness.

The thing that Tesla is producing, however, is really expensive to build right now. The cost curves are great for it to come down, but until they do they are in the ironic business of selling expensive things with thin margins.

GM would find it harder than it thinks to compete against Tesla with an equivalent product. Just as Tesla is running into challenges scaling up production.

[jonknee]

> So their lack of dealers who supply an automatic mark-up is something that they cite as a strength, not a weakness.

They don't have an automatic mark-up, but car dealers also operate on razor thin margins (the real money is in service and trade ins). However dealers pay their own rent and even spend money advertising. Tesla is on the hook for all of its dealerships, a significant cost that its competitors don't have. In the end I don't think it's such a game changer. It makes sense for Tesla, but doesn't magically make things cheaper.

[twblalock]

It also makes it easier to service your car. If you own a Tesla and need warranty service, and you live in middle America, you may have a long drive ahead of you. If you own a Chevy, it's rarely a problem.

[dilemma]

>So their lack of dealers who supply an automatic mark-up is something that they cite as a strength, not a weakness.

But it's not.