Tesla's battles: selling cars like an ipad

[abstract] If Apple were to build a car, its name would be Tesla. Author: Michael Moritz, American venture capitalist, partner of famous VC company Sequoia Capital. (Originally published in LinkedIn) if Apple makes a car, its name will be Tesla. Ironically, the New Jersey Motor Commission (new Jersey Motor Vehicle Commission) recently decided to ban Tesla's direct sales. If the politicians come up with a similar ban on ipads, iphones and Macs, Apple will need to relocate 12 stores in the "Garden State alias" to the showroom where consumers can watch (but not fiddle with) the ipad and Macairs, It is forbidden to discuss the price or place an order with an Apple representative. The intense debate about Tesla's direct sales was also staged in Ohio, Maryland, Arizona, State, Texas State and Virginia State, a battle: to be old-fashioned or to embrace the future. Car dealers are terrified that the showroom owned by Tesla poses a threat to their livelihoods. They claim that the car was sold directly by the manufacturer (whether the company was founded in 1903 or 2003, as Tesla did), according to the car franchise law (different states). And Tesla argues that the franchise law is designed to protect dealers from predatory tactics from manufacturers, or to protect investors who have invested a significant amount of money in the construction and operation of showrooms and service facilities. A car dealer is a threatened party. Fixed prices have reduced the profit margins for new models, and the less needed repairs mean lower service revenues. So it is understandable that dealers are seeking help from politicians and courts. But they are battling a wave of new technology that will be a defeat. When Daimler and Chrysler (Chrysler) set up their company, they were direct to consumers, just like Mr Marx today. is the assembly line and mass production led to the emergence of dealers all over the country. At first, dealerships were a godsend for manufacturers such as Ford and GM, because in the 1920s dealers needed to invest in showrooms and maintenance stations in exchange for the right to operate. But it was a time of Telegraph, newspaper, radio, inner tube, crank handle and 100 miles of service, and now is Twitter (tweets), price comparison sites, search marketing, lithium-ion batteries, satellite navigation and lifetime warranty. Tesla, like Apple, is selling its products in an unconventional fashion-direct sales. Tesla began building stores to sell the products directly to consumers, fearing that they would become more and more exposed to the neglect of those dealers who had been greatly affected by the overhaul of their cars.The more marginalized. If dealers are shocked by the price of 100,000 of dollars of electric cars, they will get an aneurysm when Tesla displays a model of its 35,000 dollar car. You can bet your own money. Ms Barra of General Motors and Ms. Mulally of Ford are also interested in selling their new Cadillac and buggy--something that scares dealers. It is well known that direct distribution is beneficial to consumers and manufacturers (unless there is an oligopoly or monopolist), as it cancels out redundant dealers and expensive corporate inventories, and provides better, clearer information for both parties-especially in the internet age. In fact, GM has been selling cars directly since 2000, but that is in Brazil, not in the United States. In Brazil, consumers can order Chevrolet Celta at a fixed price on the Internet at any time of the day, and dealers only need to store two cars, one in the showroom and the other for test drives. Car dealers are trying to avoid the inevitable. For new concept cars like Tesla, they have far less need for car dealerships than Stutberk (Studebaker) or Buick (Buick) cars, and the internet has been a direct bridge between consumers and manufacturers bridges. Politicians, especially in New Jersey, may be able to move on for a while, but one day they will find they cannot stop the future. (Tan S Compilation)