[homefree]

It's a corrupt market imo, like car dealerships - they work to legislate their continued existence.

Any market structured where you have some people doing many transactions and some doing few ends up skewed to benefit the person doing many while screwing the person doing few.

It's true with realtors, IPOs with investment banks, car dealerships, funeral homes etc. and it's a hard problem to fix.

[d0gsg0w00f]

How else would a car manufacturer put staff and inventory in every town across the country? They would either build dealerships themselves or franchise it out. Their cost structures don't cover this brick and mortar presence currently so costs would rise across the board.

Car dealerships are mostly middlemen between customer, manufacturer, and state government for registration and tax collection.

I just can't see how you eliminate the need to have locations to store and move around 5000lb metal objects without them.

[0xB31B1B]

Tesla does all of this and they do it without dealerships. The problem with dealerships is they’re independent franchised businesses that extract but do not create value, not that they are buildings full of cars.

[d0gsg0w00f]

Where do you think a Tesla goes to get new tie rods or a body panel replacement? They lean on the existing service location network.

My friend needed body work on his Model 3 after someone hit him. They sent him to a traditional dealership body shop an hour away that was booked solid for 3 months. His insurance only covered a month of rental. His life situation allowed him to do the remaining 2 months without a car but not everyone has that luxury.

Tesla has to do this via partnerships and has little control over the customer experience. Great for people are willing to suffer for the brand but most will take the path with least headache.

[mcmcmc]

I think you missed the part about "towns across the country". For almost 20k towns and cities in the US there are 245 Tesla storefronts.

[monocasa]

That's pretty good considering quite a few states straight up ban Tesla storefronts.

[nostrebored]

The idea that you have to go to a dealership is what’s being challenged.

If you have faith in the brand, is it that much more absurd to buy via transfer?

[mcmcmc]

I’m not sure what you’re getting at. A dealership isn’t just a place of purchase. They facilitate test drives, let people shop around for different makes and models, do trade ins. A lot of people want to see what they’re paying for before dropping 5 figures on a single purchase.

[homefree]

You don't need a dealership for that, you can do it with corporate store fronts and the experience would be better for the buyer (and the seller) because the incentives are actually properly aligned.