Tesla backs down on closing all their dealer ships. (long)

Who would then service and repair the auto's and provide parts etc? It was a whacky idea. Instead they will keep the ones open that are closest to most of their customers and raise the prices of their cars. Then evolve into more of a typical independent owned dealership arrangement. Providing more and quicker service and hands on inspection of the vehicles to prospective buyers. The established competition is about to explode giving customers maybe better options and everything Tesla does not currently offer.

One of their fundamental problems costs wise is they have no expertise running the dealerships and most all of them are operating at a loss. And are a disaster operationally. As are many if not most factory owned stores being operated by all manufacturers. A huge selling point in the original plan was to get rid of traditional dealer operators. Doesn't work. Same as most anti independently owned, anti hands on business concepts. You must have someone with expertise, a vested interest and a prevailing reason to serve the customer (survival and prosperity) to survive. Everybody's business is nobody's at the end of the day. And nobody's business is even worse. Musk probably needs to find a buyer with deep pockets so the zig zagging stops if they are to reach their potential. Instead of being a quirky boutique option but that's another issue.

Automobiles are an incredible composite of tens of thousands of parts all of which deteriorate daily. A dealership is also complicated. A new vehicle sales business. A used vehicle sales business. a supply chain and inventory and mgt of said inventory business. A service business, a parts business, a body repair business, a personnel function, a finance business, a receivables and payables business, a daily operating business management operation and more.

Manufacturer's selling new vehicles direct to the public via the internet is likely a good idea at the end of the day. Most dealers are also doing a great job with it. But then the heavy lifting begins. There must be someone around to clean up the mess and raise the baby. Tesla just wanted, for the most part to participate in the fun part of conception. Then wash their hands of the affair to a large degree.