Reuters editors discuss how Tesla Motors is shaking up the auto industry
In video uploaded to YouTube on Monday, editors at Reuters explained how Tesla Motors was disrupting the long-established car manufacture-dealer relationship.
Much like the way Apple stores operate, Tesla Motors sells cars directly to consumers through their own showrooms and the Internet. By cutting out the middleman — car dealerships — the company says it can better educate their potential customers. It also prevents the company from producing more electric cars than it can sell.
“It is a strange thing. If you want to buy a Tesla car, you can get your car from Tesla,” Reuters associated editor Antony Currie jokingly explained.
Tesla’s direct-to-consumer sales model has been challenged in Texas, North Carolina and most recently New York. So far, however, attempts to outlaw Tesla’s direct-to-consumer sales have failed.
“This is a typical Silicon Valley story were you come in and a couple of smart folks have looked at things and said, ‘Hold on a second, this is a completely ridiculous system,’” Reuters’ global editor Rob Cox added. “You basically have said lets just disrupt this thing completely, squeeze out all the costs, and re-add it to our bottom line and create a better product.”
Watch video, uploaded to YouTube, below: