Online Sales: Shaping Tesla’s Future

Mar 7, 2019   

Tesla surprised many by closing all of its retail stores in favor of an online-only sales model. As Bloomberg points out, consumers are already comfortable making major purchases from their smartphones — making the move a potentially fitting evolution of the dealership model.

Tesla could be setting a new precedent, despite a negative reaction reflected in the company’s stock price. It is a calculated risk that has allowed the company to achieve more accessible pricing, lowering the average price of a new Tesla Model S or X by 6% as well as enabling the company to deliver its $35,000 Model 3.

78% of Model 3’s were ordered online directly from Tesla’s web-site, so this won’t be a significant change to a model that was already focused primarily on online direct-to-consumer sales. Retail stores served as supplements to the order experience, allowing customers to experience Tesla firsthand without relying on a dealership model. With rules still in place in many states that prevent Tesla from operating directly without a franchised dealership, online sales bypass antiquated ways of thinking.

Showrooms made for Tesla’s primary form of marketing in high-profile areas when the Model S and X were launched as premium vehicles. Now that Tesla has brand recognition throughout the world, the company can continue relying on word of mouth and Model 3 reservation holders to drive demand throughout the rest of the quarter.

The fact is millennials typically know what they want, and are willing to make purchases sight unseen. Tesla offers a generous 7-day return period to counteract any potential concerns.

Ultimately Tesla’s shift in strategy is a bold move that modernizes the automotive sales model. was launched in 2016 to make it easier for Tesla owners to sell their vehicles directly to interested buyers, and our popularity has only grown as Tesla buyers and sellers continue to use our platform for hassle-free purchases. Our customers include forward-thinking companies like Vroom and Carvana, which offer direct-to-consumer sales of used vehicles.

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