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Tesla's New Sales Model and What It Means for Dealers

Last week, Elon Musk announced plans to close most Tesla retail stores and pivot to a new retail model: online sales only. While there are many reasons behind this strategy shift - legal challenges over factory-owned stores, increased competition in the EV market, and a need to decrease overhead costs, to name a few - one thing is clear.

Ecommerce in automotive retail is the future.

Tesla's new retail model is not new. Men's clothing retailer Bonobos has been using an ecommerce-only model since its launch in 2007. Their physical locations are showcases for their products. Shoppers browse in store, then place their orders online.

Seize the Opportunity

Smart dealers have the opportunity to beat Tesla at its own game - without making a drastic shift to online sales only. Car buyers still want to see the fit and finish firsthand, take a test drive, and talk to a product expert. Dealers that connect the online and in-store experiences, seamlessly and frictionlessly, will be able to offer something Tesla won't: the convenience of buying online or in-store.

This connected retail model has already proved successful in other industries. Clothing retailer Everlane, for example, offers a streamlined in-store experience that mirrors their online experience and has doubled its revenue 3 years running. Warby Parker, a prescription eyeglass retailer we've mentioned previously, has used this model with great success - to the tune of $250 million in sales.

Make It Seamless, Frictionless, and ConnectedDrive Checkout on iPhone and Drive Shop on iPad

Use ecommerce to deliver a more seamless, frictionless, and connected consumer experience. Dealers are already increasing PVR by $500 with the right online checkout and showroom tools.

See how your dealership can seize this opportunity. Request your risk-free demo today!

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About Author

Drive Motors
Drive Motors

Drive Motors powers over $1 billion dollars in online car sales for the largest auto dealers, banks, and brands in the world. Drive Motors uses a native approach that transforms and leverages a dealership’s own website and sales team. Drive Motors’ team has led efforts at the world’s most venerated technology companies, including Google, Oracle, Facebook, Cargurus, and Cox Automotive. Drive Motors’ investors helped start companies like Paypal, Facebook, Tesla, Lyft, SpaceX, and more.