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Tesla not likely to bow down and start working with dealerships

Even with another state banning Tesla, it doesn't seem likely the Silicon Valley-based company will change its direct-to-customer sales model anytime soon
By: Michael Hatamoto | Technology in Vehicles News | Posted: Oct 23, 2014 11:30 am

After Tesla was banned from selling vehicles in Michigan, there has been growing amazement why the company continues to focus on direct sales instead of working with car dealerships. It doesn't appear the automaker is interested in working with existing franchise owners, or bother working with new dealership owners, and wants to sell its luxury vehicles directly to customers - entirely cutting out the middleman.




"I think Elon wants to have full control of having the cars retailed through a system has total say over," said Karl Brauer, Kelley Blue Book analyst. "And, two, I think he enjoys the concept of upsetting the apple cart; he enjoys knowing that he's breaking existing conventions on every level."


Musk wants his company to have complete control of sales, rather than handing over control to dealerships, allowing the company to handle customer service problems quickly and efficiently. This ensures potential customers don't have a sour experience trying to work with a dealership looking to potentially strong-arm car buyers.


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