Elon Musk hints at need for franchised Tesla dealerships

Filed under: EV/Plug-in, Tesla Motors, Legislation and Policy

The auto dealers around the US, the ones who are frantically trying to stop Tesla Motors from selling its cars directly to consumers, might just need to wait things out. The latest state to take an aggressive stance against Telsa's dealer-free policy is Michigan, but in an new interview with Autoline Daily, Tesla CEO Elon Musk said that as the company grows, it may need to introduce franchised dealerships into its sales model.

Currently, Tesla only sells vehicles directly to customers through a network of Tesla Stores. But that may not be enough once more vehicles - the Model X and the Model 3 - arrive and demand for the electric vehicles grows in all fifty states. According to Autoline Daily host John McElroy, when he asked Musk about future growth, Musk admitted that, "We may need a hybrid system, with a combination of our own stores and some dealer franchises." That's a big turn around from Musk's previous claims that normal dealerships can't properly sell electric vehicles and that, if necessary, Tesla would try to change the laws nationwide to allow direct sales, a strategy that has had its share of successes, including surprising support from the FTC. Still, selling a few thousand vehicles a month is a lot different than selling tens of thousands, and that's the sort of thing that Tesla's legislative director Jim Chen may have been thinking about when, in a closed-door regulatory meeting in the fall of 2013, he reportedly said that Tesla would stop its factory-direct-only policy once sales increased to some unspecified level, according to Hybrid Cars. You can see the AD video below. The Tesla news is first in the line-up.

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Elon Musk hints at need for franchised Tesla dealerships originally appeared on Autoblog Green on Wed, 15 Oct 2014 17:00:00 EST. Please see our terms for use of feeds.

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