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What is this question to do with dealerships ?

In the scenario you described above a dealer would also increase the price by the same or more.
 
mkjayakumar said:
What is this question to do with dealerships ?

In the scenario you described above a dealer would also increase the price by the same or more.

I guess you answered your question - no difference - no dealer or "dealer would also increase the price by the same or more".
 
Elon has responded.

Here is the initial response post from Tesla.

http://www.teslamotors.com/blog/defending-innovation-and-consumer-choice-new-jersey" onclick="window.open(this.href);return false;

And here is Elon's response post from today.

http://www.teslamotors.com/blog/people-new-jersey" onclick="window.open(this.href);return false;
 
To be fair, Tesla incurs costs in their retail operations that Honda does not, as those costs are borne by Honda dealer. That doesn't change the basic fact that Tesla and Honda should be free to operate their businesses as they choose, of course in Honda's case subject to the existing agreements they have in place with their third party dealers.
 
palmermd said:
And here is Elon's response post from today.

http://www.teslamotors.com/blog/people-new-jersey" onclick="window.open(this.href);return false;
ROFLROFLROFL!!!!

Love the references to the bridge closure and mafia protection.
 
palmermd said:
And here is Elon's response post from today.

http://www.teslamotors.com/blog/people-new-jersey" onclick="window.open(this.href);return false;
Nice response from Elon.
 
Tesla service centers are still intact giving the presence needed for consumer confidence to buy. Let NJ Gov and dealers association pound sand.
Not sure Tesla should push this very hard until Elon has 60 days inventory built ready to ship.
Right now Tesla looks to be 60 to 90 days behind let alone have inventory.
 
smkettner said:
Tesla service centers are still intact giving the presence needed for consumer confidence to buy. Let NJ Gov and dealers association pound sand.
Not sure Tesla should push this very hard until Elon has 60 days inventory built ready to ship.
Right now Tesla looks to be 60 to 90 days behind let alone have inventory.

And they are still expanding their sales territory. Just started shipping to China and Hong Kong, and soon into Australia and England with the RHD vehicles. Plenty of new places to sell cars without worrying about New Jersey right now. The laws will be changed...it is inevitable. As Elon noted, public support for them to sell directly is very strong.
 
EdmondLeaf said:
mkjayakumar said:
What is this question to do with dealerships ?

In the scenario you described above a dealer would also increase the price by the same or more.

I guess you answered your question - no difference - no dealer or "dealer would also increase the price by the same or more".


Here, this was written before Tesla was really established with the Model S. It was studied when both GM and Chrysler were getting reorganized. I think you will find it is an interesting read.

http://faculty.som.yale.edu/FionaScottMorton/documents/StateFranchiseLawsDealerTerminationsandtheAutoCrisis.pdf" onclick="window.open(this.href);return false;
 
Since you can buy on line it's like the dealers are fighting yesterday's battle anyway. Think amazon vs best buy.The real ugliness will come if they realize their scheme isn't working and they try to shut down registrations or add extra taxes to new car registrations not bought through dealers in the state.
 
I guess you answered your question - no difference - no dealer or "dealer would also increase the price by the same or more".

..except there will be an unnecessary dealer markup, for no real added service. It is far more cost effective for the manufacturer to setup shop and sell directly, especially in the internet age.

I am envisioning a purchase experience like a Dell laptop, in which Dell has predefined configurations for a low price and quick delivery, and then you can customize for a marginal price increase and delivered two weeks later.
 
EdmondLeaf said:
Sorry, but someone have to explain to me, for what we fighting here. I bought several new cars from different dealers and never paid MSRP, or bought things that I do not want or need. Always satisfied with deal that I got, and did not mind to drive extra miles if deal was much better than offered locally. Wonder if with direct factory sale to public it will be possible to negotiate price, or stores will have ability to set their prices. If not, and price is fixed, how this will help me as customer?

Your ninja bargaining skills are an illusion. The manufacturer makes a certain profit and is unaffected by your sales price. You are only negotiating the cut of the middleman.
 
LTLFTcomposite said:
palmermd said:
And here is Elon's response post from today.

http://www.teslamotors.com/blog/people-new-jersey" onclick="window.open(this.href);return false;
ROFLROFLROFL!!!!

Love the references to the bridge closure and mafia protection.

"Gov. Christie has a bridge closure he wants to sell you! "... Oh, man! Talk about throwing down the gauntlet.

In truth, the showroom issue is a minor one. But, it does serve to reinforce Telsa's and Musk's image as insurgents.
 
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