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Tesla CEO Elon Musk Says Franchised Dealers Might Come, Sometime, One Day
Tesla Motors' company-owned stores have provoked a bitter response from state auto-dealer associations, who view them as a threat to traditional franchised dealerships.
Yet Tesla CEO Elon Musk seems to think the two business models can coexist.
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In a recent interview with Autoline Daily (via Autoblog Green), Musk hinted that Tesla itself may augment its existing network of stores with franchised dealerships as production of its electric cars grows.
Musk told Autoline host John McElroy that the carmaker may need a "hybrid system" combining its current stores with franchised dealers to meet its future growth plans.
As the Model X crossover and Model 3 sedan go on sale, Tesla may need to move beyond its own stores--which resemble high-end retailers more than stereotypical car dealerships, and are often located in shopping malls.
Instead of choosing from on-site inventory, customers order their cars online and had have serviced at separate service centers.
An increase in the number of models and volume--thanks partly to the Model 3's estimated $35,000 base price--would introduce a new level of complexity not seen with current low volume of Model S sales.
