Tesla Secures A Victory In Pennsylvania: Is Direct-To-Consumer The New Norm?

While Tesla has done a lot to stand out as the future of automotive, not everyone thinks that they are a company with staying power. Among those is John Kiefer, of the Kiefer Auto Group.

“I don’t think that it will work,” Kiefer said. “I don’t think that they’ll be able to handle all the facets that are involved in Retail Automotive, so I think that they’ll eventually go away. If Ford Motor Company couldn’t make it work, it’s hard to imagine how Tesla could make it work.”

How can Tesla make “it” work? What it are we talking about? In this case, we are referring to the direct-to-consumer sales model.

Most recently, Pennsylvania has quietly allowed the headline grabbing electric car company to open five stores in the state. It all occurred when an exemption was given to electric car companies to bypass dealership model franchise laws and sell, as Tesla does, direct to the consumer. This sales strategy has led to Tesla being banned in five states, with restrictions and pending possible restrictions in two others. With much ado about Tesla, what does someone like Dealersocket CEO Jonathan Ord think of the Tesla direct-to-consumer sales model?

“Tesla is pushing against the limits of the franchise laws,” Ord explained. “All of my neighbors own Teslas, they are kind of cool cars, but I personally like my Audi a lot better.”

With Tesla Motors opening up their patents to anyone in order to expand the electric car industry and reports that they want to lower the price for their next vehicle, the Tesla Model III to around $35,000, will the consumer-direct sales model be the new “norm?” Ord isn’t convinced.

Ord said that, “I don’t think that it’s(the retail automotive sector) is going to go completely to the Tesla side. I don’t think that’s the new modern if you will. I think that retail dealers are here to stay and they’re going to be here for a long, long period of time and they provide a tremendous value and tremendous function to OEMs.”