FTC to Host Public Workshop Examining the U.S. Auto Distribution System Workshop Will Explore Competition, State Regulations, and Emerging Trends in the Industry, Project No. P131202
Tesla is being accurate with their bold stance on direct to customer sales. I say the word accurate because of their unique situation they are in; creating a new car from ground up that is electric. To simply but it, why build a service network when it isn't needed. I work for a medical device company and we only have one service location in U.S for a certain product line. This is very important as service is physically located in close proximity to various counterparts such as marketing, regulatory, engineering, R+D, fixtures and other entities. This business model is key to properly and safely servicing regulated medical devices. Why should Tesla be treated any different. Electric cars do not require as frequent maintenance as gas or diesel cars. If a major repair is needed it is likely that training, unique and expensive fixtures are required. So much so as that it would not make sense for Tesla to have to buy or engineer 50 of these fixtures or tools to perform the major repair event. Electric cars do not require a dealer or service network. Why force them to. Deal with this issue now and let Tesla sell in all 50 states, or deal with this issue in the future with another electric car company.