Reuters editors discuss how Tesla Motors is shaking up the auto industry
June 24, 2013
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: