Tesla requires buyers to purchase cars online to circumvent state laws that require car sales to be done through franchise dealerships. “Tesla Stores” exist only to educate potential customers and to deliver vehicles purchased online.

Tesla Stores: What Are They and How Are They Different Than Dealerships?

Since the day Elon Musk brought Tesla into the automotive world, he has been reshaping the way we look at the car-buying process.

Traditionally, car dealerships have been individually-owned franchises. Automotive manufacturers supply the dealership with inventory and they sell them for a profit. In fact, many states have legislation requiring car sales to be this way.

Unfortunately, not many people are excited to go to a car dealership. Dealerships have been stereotypically branded as pushy and intimidating, with a salesperson following you around and trying to up-sell you every step of the way. Tesla is actively working to avoid being lumped into that stereotype. In fact, they’re trying to make Tesla appear just like any other reta… Continue Reading (5 minute read)

7 thoughts on “Tesla requires buyers to purchase cars online to circumvent state laws that require car sales to be done through franchise dealerships. “Tesla Stores” exist only to educate potential customers and to deliver vehicles purchased online.”

  1. Ryukyo

    Ridiculous law that pads the pockets of middlemen, raising costs to the end user, and raising sales tax.

  2. Josh1billion

    My state (WI) came close to finally getting rid of that law last year, due in large part to one legislator who’s a big fan of Tesla. The Republicans wrote up a bill for it, but Governor Evers vetoed the whole thing in its final hour. Very disappointing.

    https://electrek.co/2019/06/27/tesla-sell-wisconsin-republican-senator-repairs-salvaged-tesla-cars/

    https://www.jsonline.com/story/news/politics/2019/07/08/tony-evers-says-he-vetoed-tesla-provision-because-payoff/1677873001/

    It sucks, because now if I ever need to get my Model 3 serviced, I have to take it all the way to Minneapolis. No Tesla showrooms in WI.

  3. northstardim

    Michigan is the place where this bizarre idea comes from since the big three own the legislature. They don’t allow Tesla’s to be sold at all there, so people go out of state to buy.

  4. revocer

    How can we get rid of the unnecessary middlemen?

  5. FacelessFellow

    So people hate scalpers when it comes to PS5s, but they are cool with old fashioned car dealerships? It’s the same thing.

    Thankfully Tesla is trying to cut the middle man out

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