{"id":21196,"date":"2022-05-01T12:04:08","date_gmt":"2022-05-01T16:04:08","guid":{"rendered":"http:\/\/autosector.com\/?p=21196"},"modified":"2022-05-01T12:04:08","modified_gmt":"2022-05-01T16:04:08","slug":"tesla-direct-sales-success-versus-legacy-ev-sales","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=21196","title":{"rendered":"Is Tesla’s Sales Model Poised To Transform The Auto Industry?"},"content":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at InsideEVs, nor have we been paid by\u00a0EVANNEX<\/a>\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!<\/em><\/p>\n

Posted on<\/span>\u00a0EVANNEX on May 01, 2022,\u00a0by<\/span>\u00a0Zachary Visconti<\/p>\n

As the world gradually shifts to electric vehicles, the auto industry is also beginning to witness the decline of the decades-old dealership model. For buyers and automakers both, companies like Tesla and Carvana are disrupting the industry\u2019s traditional\u00a0dealership approach, and there\u2019s probably little the old guard of auto cronies can do to stand in their way.<\/p>\n

\n\n\n\n
\"\"\/<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Above: Tesla Model 3 at a service center (Photo: Tesla Fans Schweiz \/\u00a0Unsplash<\/a>)<\/em><\/div>\n

Tesla<\/a>\u2019s direct-to-consumer model changes the game for buyers, eliminating the long days of haggling prices at a dealership, according to an opinion piece from\u00a0MarketWatch<\/em><\/a>. Additionally, it removes the need for dealerships to stock 900 cars at a time on the lot, when buyers themselves prefer to buy online.<\/p>\n

Where manufacturers used to believe they relied on dealerships<\/a>, the COVID-19 pandemic has also proven that to be false. As the pandemic brought on a major\u00a0chip shortage<\/a>, manufacturers slowed production and saw 900-car lots drop to just 50, despite the fact that sales remained strong \u2014\u00a0consumers were proving more satisfied with just a test drive before buying vehicles online.<\/p>\n

State laws in some states still prevent these direct-sales models. However, in states like Texas, Tesla must use legal loopholes to sell direct to local buyers.<\/p>\n

Other examples include Oklahoma, where\u00a0Tesla<\/a>\u00a0has requested help opposing legislative attempts to ban direct sales, and New Mexico, where the automaker must use Native American reservation land to bypass laws against direct sales. Meanwhile, used car sales are seeing a surge across the board since dealership protection laws don\u2019t apply to many of them.<\/p>\n

\"\"\/ <\/p>\n