Tesla to close most of its stores and sell online

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Originally Posted by PimTac
I wonder what the return rate would be? A lot of new cars have minor issues that can be addressed by dealerships. Amazon?

Also, all those returns get sent right back out until they get happily accepted.

I don't mind new ideas but on cars I still like to kick the tires and test drive it first.

I'd buy one from the Amazon clearance / warehouse deals section if it was worth the price...
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I'm not sure what the fascination with Amazon is. Sometimes if I figure out who the manufacturer is, you go to their site and it's cheaper on their site than Amazon as they have to pay Amazon fees.

Tesla has their own website, Amazon is for obscure retailers.
 
Wonder what that means for the local dealership groups that spent MUCHO DINERO for their tricked-out dealership building, Supercharger installation, etc.-there's going to be some big lawsuits & possible bankrupcies over this.
 
There is so much misunderstanding about Tesla stores. They are not dealerships. They do not carry inventory.
They are not privately owned, like dealerships; they are part of Tesla.
A dealership is a middleman; Tesla cuts out the middleman.

Most were in shopping malls; you can get information, sit in one.
Oftentimes there is a cutaway to showcase technology.
You can configure one there on-line and give them a credit card for the $2,500 deposit and get a delivery date.
The same as if you bought on sitting on your couch.

In Silicon Valley, they deliver to your door; our Model 3 was.

Teslas are bought on-line. Period.
 
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Originally Posted by bullwinkle
Wonder what that means for the local dealership groups that spent MUCHO DINERO for their tricked-out dealership building, Supercharger installation, etc.-there's going to be some big lawsuits & possible bankrupcies over this.


As someone else said, there are no dealerships so no dealership groups spent any money. Same as Supercharger, they're all owned by Tesla.

But as others said, cutting costs by eliminating showrooms probably isn't a good long term decision, it's a short term one that will cost them in the future. Maybe the theory is that they don't need them once there are enough on the road that you can seem them all the time. Before the Model 3 or even a few years ago, it was very rare to ever see one on the road. Now that they've been out for a few years, I'm starting to see more around.
 
I understand them wanting to break the franchise dealership Mafia model, but I cannot understand buyers buying just on faith alone without seeing and touching what they are actually purchasing before hand. Boggles my mind you can spend the coin they are asking and then take direct home delivery and a steaming pile of junk could be on the carrier truck. Then you are out the gate having to get warranty work.
 
Originally Posted by Hootbro
I understand them wanting to break the franchise dealership Mafia model, but I cannot understand buyers buying just on faith alone without seeing and touching what they are actually purchasing before hand. Boggles my mind you can spend the coin they are asking and then take direct home delivery and a steaming pile of junk could be on the carrier truck. Then you are out the gate having to get warranty work.


I believe it's a 7 day money back guarantee. Basically a free week rental as long as it's under 1000 miles. I can't think of another company that does that as a matter of policy although I think a few companies have had promos like that in the past but may have been limited to a particular model for a particular time.
 
Makes sense. There are similar business models (Carvana?) for purchasing regular autos in the same way.

Who knows. Might be the way things eventually go.

Nobody could imagine renting and buying movies and games without a retail store, and we all know how that worked out.

Tesla has no valid apples to apples competition at this point. Either someone wants a Tesla or they don't.
 
Originally Posted by Hootbro
I understand them wanting to break the franchise dealership Mafia model, but I cannot understand buyers buying just on faith alone without seeing and touching what they are actually purchasing before hand. Boggles my mind you can spend the coin they are asking and then take direct home delivery and a steaming pile of junk could be on the carrier truck. Then you are out the gate having to get warranty work.

You can test drive a Tesla at a service center. They have a small number of Model 3's in the various engine/battery configurations.
We drove a real wheel drive, medium range battery before ordering the car.
 
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Originally Posted by dave1251
Originally Posted by PimTac
Tesla had a $1billion debt deadline as of today. My guess is they will default.



It not today it will be someday.


My great great great great grandfather told me in 1960 never to invest in GM, it was going to go bankrupt. And what do you know, he was right although sadly he never got to see his prophecy came to fruition in his own life :)

Oh by the way Tesla made the payment but as you predict, in probably another 80 years, they could go bankrupt.
 
Originally Posted by Vikas
Originally Posted by dave1251
Originally Posted by PimTac
Tesla had a $1billion debt deadline as of today. My guess is they will default.



It not today it will be someday.


My great great great great grandfather told me in 1960 never to invest in GM, it was going to go bankrupt. And what do you know, he was right although sadly he never got to see his prophecy came to fruition in his own life :)

Oh by the way Tesla made the payment but as you predict, in probably another 80 years, they could go bankrupt.



Closer to 3 years.
 
They're not closing all their stores. Even though this is a cost cutting measure, they're keeping their high traffic locations. I know they cost more in rent, but probably worth it for their visibility. I don't see them shutting down at Santana Row in San Jose, San Francisco, or other high profile locations. And they also have their store at the factory in Fremont, California. Anyone who want to look around can still do so.
 
As far as I saw from several people who I know and own Tesla, they are much more interested in that oversized tablet than driving. So, in case of Tesla, internet sales make absolute sense.
 
Originally Posted by y_p_w
They're not closing all their stores. Even though this is a cost cutting measure, they're keeping their high traffic locations. I know they cost more in rent, but probably worth it for their visibility. I don't see them shutting down at Santana Row in San Jose, San Francisco, or other high profile locations. And they also have their store at the factory in Fremont, California. Anyone who want to look around can still do so.

I live in Los Gatos, I stay outta Carlos Santana Row.
AFAIK, the Sunnyvale Service Center at El Camino and Wolfe Road is fine.
Santana Row is impossible to park; Sunnyvale is easy-peasy.
 
Originally Posted by dave1251
Originally Posted by Vikas
Originally Posted by dave1251
Originally Posted by PimTac
Tesla had a $1billion debt deadline as of today. My guess is they will default.



It not today it will be someday.


My great great great great grandfather told me in 1960 never to invest in GM, it was going to go bankrupt. And what do you know, he was right although sadly he never got to see his prophecy came to fruition in his own life :)

Oh by the way Tesla made the payment but as you predict, in probably another 80 years, they could go bankrupt.



Closer to 3 years.

The rumor is Apple is buying Tesla.
In 2017, Apple bought every Lexus RX450h from the local dealerships to develop their self driving car...
Who knows?
 
I think it's unlikely Apple will buy Tesla. The rumor has floated around for a while now. Other rumors included Apple buying Disney and Apple buying Sony.

The car rumors are sketchy. If anything, Apple would get into the subscription car service but that is a bit off as of now. Banking is another rumor with some credibility.

Such are rumors.
 
Originally Posted by StevieC
Originally Posted by Mr Nice
Tesla should have a store front on Amazon.

I'd love to buy one through Amazon.

With prime shipping and no hassle returns.
lol.gif



Maybe it will work like Amazon Wardrobe, order a couple of models, send back the ones you don't want.
 
Originally Posted by JeffKeryk

The rumor is Apple is buying Tesla.
In 2017, Apple bought every Lexus RX450h from the local dealerships to develop their self driving car...
Who knows?


Apple buying Tesla is a pump and dump scheme, so was the Project Titan leak on the news. That got the stock from $100 to $120 and then back from $120 to $100. I think Carl Icahn was behind it, and he made a great exit with lots of profits.
 
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