AG, DF, & MG, I recently walked into a Tesla store for the first time. It was much better than going to a dealership and being clobbered by a sales guy. But, there are some limitations to this business model as well. A franchise model offers more locations (I believe) for service, the ability to test drive on-the-spot, and more individual time with someone who can answer your questions about the vehicle (instead of 10 customers taking turns to speak with 1 Tesla store worker). To name a few. There ARE franchise dealers that have a set price for each model and/or have one salesperson take you through the entire process of selling the car, selling insurance products, and arranging financing. My prediction is that dealers who take a more progressive approch to how their store operates (and how they pay sales people) will be more successful in competing with Tesla. Note: 22,000 sales in the luxury segment with only a few models is pretty impressive if you ask me. So, I disagree with the first statement in paragraph 5. Tesla does represent a threat. There are still many unknowns though - especially how the market will react when BMW, Lexus, or Mercedes come to market with similar battery-only cars?