Tesla's Unconventional Sales Model Could Mark the End of Traditional Car Dealerships

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Tesla's Unconventional Sales Model Could Mark the End of Traditional Car Dealerships
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with shifts to electric vehicles,the auto industry is also beginning to witness the decline of the decades-old dealership model

, and there’s probably little the old guard of auto cronies can do to stand in their way.

Tesla’s direct-to-consumer model changes the game for buyers, eliminating the long days of haggling prices at a dealership, according to an opinion piece from. Additionally, when buyers themselves prefer to buy online, it removes the need for dealerships to stock 900 cars at a time on the lot. Where manufacturers used to believe they relied on dealerships, the COVID-19 pandemic has also proven that to be false. As the pandemic brought on a major, manufacturers slowed production and saw 900-car lots drop to just 50, despite the fact that sales remained strong — consumers were proving more satisfied with just a test drive before buying vehicles online.

State laws in some states still prevent these direct-sales models, and in states like Texas, Tesla must use legal loopholes to sell directly to local buyers., where Tesla has requested help opposing legislative attempts to ban direct sales, and New Mexico, where the automaker must use Native American reservation land to bypass laws against direct sales. Meanwhile, used car sales are seeing a surge across the board since dealership protection laws don’t apply to many of them.

Toni Sacconaghi, Bernstein senior research analyst, sees dealerships as a disadvantage for Big Auto (YouTube:

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