Recently, Tesla Motors was denied the ability to sell their electric cars in Michigan by the state legislature. This is the latest in a series of states that have blocked the company from selling their cars, citing archaic dealership franchise laws. Elon Musk has long stated that franchising wouldn’t work for Tesla. But could they franchise and still control the sales?
Musk doesn’t want to see Teslas sold alongside Fords or Dodges. This makes sense; dealerships will push cars that sell well in volume, or generate the most revenue for the dealership. Also, there’d be no way to know that salespeople had the best training and be as knowledgable as they need to be to sell such a technologically advanced car.
But what if Tesla had their own franchises, and per the franchise agreement require the franchisee to provide the same level of training that Tesla does now, and limit dealerships to only selling Teslas. Franchise agreements can require a lot of stipulations, so why couldn’t Tesla do the same?
Would it help get around the current sales issues they’re having? I don’t know. But it would give them a better leg to stand on in this fight.
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