RE:RE:Top Pick...Veronika Hirch, Arrow Capital
Tesla reaches deal to keep selling in New York
Quote:
"As part of the compromise announced late Friday, Tesla can continue to operate its existing stores but new ones will be allowed only through dealerships."
Cars are getting increasingly complex. Who is going to service them? Who is going to handle those massive recalls? Independent mechanics? I don't think so.
Think of all other services that dealerships provide. Trade-ins. Lease returns. Who is going to do it if not the dealers? Tesla partnered with AutoNation to handle trade-ins. Note that used cars have fatter profit margins than new cars.
That said, I agree with your general sentiment. 10 years is a very long time. No business is completely immune from competition.