In the United States, Tesla sells its products directly through a network of about 112 stores and galleries. Tesla combines service centers with sales centers to create the Tesla Service Plus centers. Tesla navigates around restrictive franchise laws by selling through online channels and providing alternative collection locations.
Business Model & Future Plans
I. Direct Sales
II. Service Plus
III. Supercharger Network
In the future, Tesla hopes to expand its "network of Supercharger stations" both in the United States and globally. The company also plans to launch a "network specifically for other automaker brands for EV charging supply."
Efforts to Navigate Around Franchise Laws
According to Yahoo Finance, about 16 states have franchise laws that prevent Tesla from opening and operating dealerships. Also, about nine states limit the number of dealerships that Tesla can open.
Notably, in most of these states, Tesla can open galleries where it can display its vehicles andprovide
I. Online Sales
II. Alternative Collection Points
III. Legislation
Business Model & Future Plans
According to Investopedia, Tesla's business model is unique as it combines aspects of being a hardware supplier, an auto-maker, a tech company.
Tesla's business model is built on three approaches to servicing, selling, and charging its electric offerings.
Tesla's business model is built on three approaches to servicing, selling, and charging its electric offerings.
I. Direct Sales
Unlike traditional franchised dealerships, Tesla sells its products directly through its international network of over 300 galleries and showrooms based in prominent urban locations worldwide.
Tesla says that owning and operating the sales channel improves the customer purchasing experience since the salaried Tesla-employed service and sales staff have no conflicting interests. The company also believes that it "gains an advantage in the speed of its product development" by operating through company-owned channels.
Currently, Tesla operates about 112 stores and galleries in the United States. However, the company plans to shift all its sales online in the future in order to counter restrictive franchise laws and to lower its prices.
Tesla says that owning and operating the sales channel improves the customer purchasing experience since the salaried Tesla-employed service and sales staff have no conflicting interests. The company also believes that it "gains an advantage in the speed of its product development" by operating through company-owned channels.
Currently, Tesla operates about 112 stores and galleries in the United States. However, the company plans to shift all its sales online in the future in order to counter restrictive franchise laws and to lower its prices.
II. Service Plus
Tesla has combined many service centers with sales centers to create the Tesla Service Plus centers. The centers serve as both servicing and charging locations for Tesla customers.
Tesla also staffs "Tesla Rangers" who are mobile vehicle technicians who provide vehicle servicing services from the homes of Tesla's customers.
Additionally, the Tesla Model S can upload data wirelessly which allows technicians to fix a number of issues remotely.
Tesla also staffs "Tesla Rangers" who are mobile vehicle technicians who provide vehicle servicing services from the homes of Tesla's customers.
Additionally, the Tesla Model S can upload data wirelessly which allows technicians to fix a number of issues remotely.
In the future, Tesla plans to "increase investment in its vehicle service capability and use mobile technicians in the absence of physical service locations." The company will increase the number of service technicians to ensure service availability in all its areas of operation.
III. Supercharger Network
Tesla's Supercharger stations enables Tesla customers to fully charge their vehicles in about half an hour without charges.
Tesla providesthese charge
Tesla believes that this will speed up adoption rates of electricvehicles both
Tesla provides
Tesla believes that this will speed up adoption rates of electric
In the future, Tesla hopes to expand its "network of Supercharger stations" both in the United States and globally. The company also plans to launch a "network specifically for other automaker brands for EV charging supply."
Efforts to Navigate Around Franchise Laws
According to Yahoo Finance, about 16 states have franchise laws that prevent Tesla from opening and operating dealerships. Also, about nine states limit the number of dealerships that Tesla can open.
Notably, in most of these states, Tesla can open galleries where it can display its vehicles and
In the United States, Tesla currently operates stores in 23 states as well as the District of Columbia.
I. Online Sales
To navigate these franchise laws, Tesla makes use of internet sales channels including its website where customers can purchase and customize their Tesla vehicles of choice. In
II. Alternative Collection Points
Additionally, Tesla has made it possible for potential customers living in Tesla-restricted states to still order Tesla vehicles and collect them in less restricted locations. For example, David Poque, a Yahoo Finance tech critic living in Connecticut (where Tesla cannot open dealerships) collected his Model 3 in New York.
III. Legislation
Tesla has tried to challenge the restrictive franchise laws through federal lawsuits hoping that it could use a 2013 ruling of the federal appeals court in its favor. However, its efforts have not always been successful and the ruling is still pending.