Musk Says Tesla May Need Franchised Dealers As Company Grows : Video

Tesla CEO has been fighting a hard battle with auto dealerships around the U.S. as they attempt to have Tesla’s sales model banned in their respective states. Tesla negates the need for franchised dealers by selling its cars directly to consumers, but in a recent interview with Autoline Daily, company CEO Elon Musk acknowledged they may need to introduce franchised dealers going forward.

The only way to buy a Tesla right now is either ordering one online through the company’s website, or by visiting one of its retail stores located around the U.S. and ordering one from there. However Musk says that as the company grows and introduced more models, the retail stores and online ordering process may not be enough to support demand for its vehicles.

“We may need a hybrid system, with a combination of our own stores and some dealer franchises,” Musk admitted. Formerly, the billionaire businessman took a firm stance against selling its cars through franchised dealers, claiming regular dealerships don’t know how to properly sell an electric car. Tesla has and continues to fight against certain laws for its right to sell vehicles directly to the consumer and in some cases got its way.

While the direct sales business model is working right now, that may change as Tesla continues to grow. They currently sell a only a few thousand vehicles a month, but when sales reach tens of thousands or even more, it will be hard to keep match demand with its direct sales technique.

See Musk’s interview with Autoline Daily in the video below.

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