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by proland 4757 days ago
It would be the car dealers protesting... I'm sure other car manufacturers would love to be able to sell their cars direct to consumer again.
1 comments

You may be sure, but I'm not.

First of all, smart companies understand that the key to profit margins is to have barriers to entry. The need to develop a dealer network is a huge barrier to entry, and car manufacturers have an interest in preserving that.

Secondly, choosing to expand vertically can be a fast route to chaos. For instance suppose that Ford decided to get into running its own dealerships. All existing Ford dealers would get nervous, many would switch brands, and others already sell multiple brands and would direct their customers away from Ford. Therefore Ford would have to be very, very careful about opening its own dealerships.

Thirdly, even if car manufacturers want to get rid of the dealership model, none want to say this where any dealers might hear. Because of fear of the same kind of chaos as before.

So for all three reasons, there is no way that Tesla is getting any support for this from other manufacturers.