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by smsm42 1484 days ago
The thing is Tesla is a luxury car for rich people - upper middle class and above. This means you only need a limited number of show rooms - where most rich people live - and rich people are also pretty mobile, so they can come to you. Scaling the same for car with more broad appeal may be hard to manage for the company, and there's no incentive for the third party to do it if they can't sell. Honda sells 4x more cars than Tesla in the US, Toyota - 7-8x. Can this still be managed by showroom-only? I have my doubts.

The state I live in has 1 (one) Tesla shop. For the whole state. Do you think the other car makers would be able to work with one showroom per state?

2 comments

I’m guessing EV sale in your state is minuscule compared to ICEs? Why do Tesla need more than one showroom if that one can handle all the sales in the state? Or maybe there are Tesla showrooms in adjacent states that are frequented by consumers from your state?

Also, not all Tesla sales happened after consumers visited their showrooms. Tesla itself planned to close most of their showrooms at some point [0], only to reverse it later. I’m sure they were confident their sales wouldn’t tank when making such decision. One dealer per state may be too few for Ford, how about five? or ten? Do you think Ford can’t afford five or ten showrooms?

[0] - https://www.theverge.com/2019/2/28/18245296/tesla-stores-clo...

Tesla doesn't need more showrooms. But somebody like Honda or Toyota couldn't do with the same one-showroom-per-state model. That's why I have three Honda dealerships and three Toyota dealerships within 30 minutes drive of me.

> Tesla itself planned to close (all) their showrooms at some point,

Maybe for Tesla it could work. For Toyota - they'd be insane to do something like that.

> Do you think Ford can’t afford five or ten showrooms?

They could afford, but that would cost them. And it probably won't be very efficient. For Tesla, whose buyers have little concern for price, and whose meme value is obvious, it may work. For Ford, which very much competes on price and utility with about a dozen other makers, I don't think such a move would be survivable. They could sell one special model this way, maybe, but making whole business - I'll believe it when I see it, done not for a niche rich people's car but by some mass-market vendor.

The Ford electric pickup costs more than a Model 3 Tesla.