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Jared Hamilton
From: Jared Hamilton
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Michia Rohrssen

Michia Rohrssen CEO/Co-Founder

Exclusive Blog Posts

4 Sales Lessons from Real Car Shoppers

4 Sales Lessons from Real Car Shoppers

I’ve worked with auto dealerships across the country and 99% of the time, when I ask what their primary goal is, the answer is increasing car sales. …

WEBINAR RECORDING - How To Generate More Qualified Leads in Q4

WEBINAR RECORDING - How To Generate More Qualified Leads in Q4

  Car shoppers have a lot of questions and dealerships need to be available to answer them quickly, concisely and at scale to maximize sales. 8…

This is How Reed-Lallier Chevy Sold More Used Cars – and How We Helped

This is How Reed-Lallier Chevy Sold More Used Cars – and How We Helped

Used or Certified? More often than not that seems to be the choice car buyers are making during this unsteady sales year. Consider: Edmunds expects new veh…

How Servicing Fleets Should Be Different

How Servicing Fleets Should Be Different

A large local construction company truck pulls into the service drive. The lone occupant hops out of the driver’s seat, already scrolling through…

Are You Ready For Monday? DSES Best Idea Contest, 2019!

Are You Ready For Monday? DSES Best Idea Contest, 2019!

One of my favorite events at the Driving Sales Executive Summit is the Best Idea Contest. Each year participants enter their respective ideas. For those wh…

Why Tesla Missed the Boat

If you haven't heard already, Tesla was in a world of hurt after reporting its Quarter 1 sales. In fact, the pain was so great that some could say it almost became the Titanic with a series of unfortunate events including sales reported lower than expected, missed essential tax credits and Elon Musk was forced to appear in front of the SEC as he was unable to keep his (Twitter) mouth closed.

Tesla sales fell 61% in the United States and 31% worldwide resulting in an 8% drop in stock price. While that may not sound like a lot, that effectively reduces Tesla’s market cap by $17 billion! That’s nothing to shake an iceberg at!

You do have to give Elon Musk some credit though. While his changing behavior puzzles and angers many, he’s also widely regarded as a visionary and a genius. But, while his cars are beautiful, innovative works of art, it seems he can’t get his fundamentals in place to solve the problem of auto manufacturing and sales at a scale that meets promises he has made and keeps up with consumer demand.

It doesn’t matter how great the vehicle is if Tesla can't deliver it. Also, cars need to be serviced and, while Tesla seems to be working to make that easier, it just can't effectively handle sales and service with the limited number of locations it has. There is a reason why Toyota and other major brands are so successful … because they are accessible!  With a Ford dealership every 3 miles, consumers find it really easy to buy and service their Ford vehicles. In fact, Ford has about  3,000 dealerships in the United States alone!

Do you know how many Tesla has?

Eighty in the United States.

While Elon Musk tries to reinvent the retail vehicle sales system, it looks more like his sales (and stock) have taken a ride to Mars on SpaceX.

Almost all of Tesla’s sales are online. Customers can touch and feel a car in a gallery -- but not THEIR vehicle. Anyone that sells cars knows that the getting the customer to take mental ownership of a car is the whole point of a test drive and, by tapping that emotion, it becomes much easier to close the sale.

But Tesla can’t do that. Why? Because Elon Musk is busy fighting with state auto dealer associations and legislators so he can have his direct-to-consumer model. Meanwhile, vehicle manufacturing and sales are suffering.

Perhaps it is time for Tesla to reconsider its strategy. Vehicle franchises have been around for decades and are likely to continue for a long time yet. Tesla has undoubtedly created and adopted some cutting-edge technologies, including over-the-air updates, and their cars certainly have sex appeal. The company has also made the process of BUYING a car online a breeze (even though it can’t necessarily deliver one on time.)

Perhaps if Elon Musk were to adopt a franchise model, he could put the legal woes, battles, sales issues and, potentially even manufacturing issues behind him. And, here's a thought, maybe this could be made even simpler if he partnered with an existing manufacturer that has an established quality manufacturing infrastructure.

In my opinion, that is how Elon Musk and Tesla can break away from the iceberg and continue their journey. Failing to do so just means that "all aboard" are bailing water to stay afloat.

And we all know how that story ends. I’m sure we’ll read all about it on Twitter!

Martins Ville

It's funny money dude. Look at Twitter, they make no money, and are viable. What? I ordered my Model Y, and own no stocks, I look at the net benefits to the consumer. Teslas stick price is meaningless to most, it's the fact it's a great car and solution that matters most.

Martins Ville

So your saying Vroom, Fair, Carvana and others like them are lame too?

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