Tesla Sales: How Do They Work?

Last semester I posted about the governments of certain states trying to stop/limit the sales of Teslas. A couple months later equipped with more knowledge, I'm ready to attempt  to explain this topic more in depth.

There must be a reason why these states don't want Tesla's being sold directly, right? Right. Dealers are mostly run the same way. They pay a certain fee to the manufacturer and the manufacturer gives them a certain allotment of cars they can order from the factory. The more money they pay to the factory, the more allotments they get, the more cars they can sell. On top of just selling cars, dealerships service cars too. Dealerships get cars that need servicing, service the car, and then bill the factory for parts they had to use and labor time. This is where dealers can be dishonest. They can replace a part on a customer's car that doesn't need replacing, and bill the factory for it, receiving more money than they've spent. This costs the factory, and thus, the cost of servicing and buying cars is higher to offset this cost.

This is where Tesla's direct selling comes in. Since cars are being sold directly to consumers from the factory, the store doesn't have to pay for the factory for an allotment for a customer's car to be built, this saves money, and thus allows the car to be sold for cheaper. Service works the same way. Since the store is an extension of the factory the store has no reason to cheat or be dishonest to the factory the factory won't have to spend extra money, thus allowing the price of parts and the cars to be cheaper.

This, as a whole, is extremely beneficial for consumers because, hey, who doesn't want cheap stuff.