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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

Michael Hatamoto | Oct 23, 2014 at 06:30 am CDT (0 mins, 50 secs reading time)

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.

Tesla not likely to bow down and start working with dealerships | TweakTown.com

"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.

Last updated: Sep 1, 2017 at 05:42 am CDT

Michael Hatamoto

ABOUT THE AUTHOR - Michael Hatamoto

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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