Not that we can afford it anyway...but it would have been awesome not haggling with a salesman and i

Which wasn't a surprise. The state's car dealers have a long, proud history of plying legislators with campaign cash and gifts. So when Texas Auto Dealers Association President Bill Wolters complained that the Tesla bill would open the door for huge corporate car-makers to "compete with our family-owned businesses," lawmakers listened.
In return, online hotel reservation TPJ writes, "[l]awmakers happily gave Musk what he wanted -- so long as he didn't challenge powerful, entrenched interests." online hotel reservation Sweeping bills supporting SpaceX, Musk's private rocket-launching venture, sailed through while the more modest Tesla-friendly measure stalled.
Tesla's business model relies solely on the lifetime online hotel reservation guarantee of the battery to subsequent owners.  Currently, the battery costs $70,000 to replace.  If the company becomes online hotel reservation insolvent, there goes the resale value.
Car dealerships derive most of their REVENUE from car sales, but their PROFITS from service. The reason why Musk wants to bypass the car dealership franchise is because Tesla is designed to be a low maintenance vehicle. No oil changes, transmission service, battery checks, etc.
So far, most of the "service" has been software updates that can be done by the owner at home. If you buy a Tesla, you can expect at most to change the tires periodically like any vehicle, and that doesn't have to be done at a dealership.
Dealers will have little interest in selling a vehicle that directly competes with their profit-generating business model. Some commenters have suggested that dealers add "value," but if you're referring to test drives and showrooms, Tesla can do that just fine. What little additional value dealers offer only adds to the cost.
So why not let the consumer decide? One additional aspect to consider in all of this is that dealers are less concerned about Tesla (it's a tiny player for now), but instead do not want the big guys to offer direct sales. Some of the commenters here are confused as to how monopolies work, but even direct sales by big auto companies should not be expected to increase prices, as there are so many competing online hotel reservation auto makers to choose from.
Know how I know? Look at GM do Brasil. They have a system whereby a buyer can not only order competely and directiy online, but in doing so can totally customize online hotel reservation their car down to every last detail and option, purchase it, then track the vehicle all through production and pick it up at one of several distribution centers.
And all without the guiding hand of a car dealer. No hours spent discussing LoJack, dealer financing, rustproofing, or all the BS (sorry, "value") that dealers tack on. The result? It has the other carmakers in Brazil scrambling to offer a competing product, online hotel reservation not bellyaching for gov't protection.
I don't have a particular problem with middle men in general. In many industries, there is an economic rationale to their existence, even if they add an extra layer of cost. However, I have a huge problem with legislatively protected distribution laws. Cars and alcohol are the most obvious ones that come to mind and both exact huge rents from the consumer and use that profit to line the pockets online hotel reservation of politicians in both parties.
Although for what it's worth, car dealerships don't really make much money on new car sales. The margin online hotel reservation is something like 3-5%. It's pretty ridiculous. online hotel reservation The real money is in used car sales and service. Service margins are almost 50% at dealerships and used cars are probably in the 30% territory, give or take.
I'll be sure to remember that list of money given by car dealerships. The next time I hear a car salesman cry that the price of a car is too low and he has to run a business and can't give cars away.
Not that we can afford it anyway...but it would have been awesome not haggling with a salesman and inflated msrp's. When I was shopping for my truck, each dealership had its own Msrp for the exact same features.
Who the hell would defend car dealerships? online hotel reservation They are the text book definition of middle men.  IF I can go buy my house direct from another person then why can't I buy a car directly from a manufacterer?  TVs, Computers, Phones, HOUSES, ....nothing else gets this kind of crazy legal protection.
I saw this story the other night on TV somewhere, and thought how out-fracking-rageous it is for those hypocritical "business" people who are always screaming, "Let the market decide; we don't need NO regulatin' of our businesses." Tesla wanted to sell directly to the public without a dealer middle man. Texas said, "No!" How dare a business try to do business here!
"A Battery Replacement Option will be available for purchase soon. The option online hotel reservation allows you to pre-purchase a new battery to be installed after eight years for a fixed price: $10,000 for 60 kWh batteries and $12,000 for 85 kWh batteries."
If you believe online hotel reservation that in the unlikely online hotel reservation event of total battery failure on a new Tesla S that Tesla will tell people to just buy a new car, then you haven't been following Tesla and Musk's commitment to quality and customer satisfaction.
Tesla is already light years ahead of where Delorean was--in terms of production volume, available cash, distribution network, etc. etc. Every hurdle--range anxiety, reliability, build quality, etc. has been addressed, and continues to be.
This isn't a Nissan Leaf. It's not a niche vehicle, as Musk's approach is to produce a car that competes head to head with its competitors. For the SUV they decided the X has to have a 3rd row, so that it competes with any high end SUV on the market.
@ dmtrousd  agreed completely. service and used car sales are where the money is for dealers. and readers here are confusing monopoly with monopolistic competition. the example thrown out was Apple, but that's not actually a great example if you're talking iPhones because the mobile OS space doesn't have enough competitors to be considered monopolistically competitive. the better example is McDonalds. only McD's can sell fast food under its own brand name, but it has so many competitors in the same industry that it can't gouge the customer and is thereby effectively a true market. for the record, most national fast food chains have some mix of company owned and franchised stores. there is no reason that company-owned locations would put franchised locations out of business unless the franchise was offering weaker service (especially in fast food where menu pricing is standardized regionally).
@Steve Nabors It costs money to run a campaign, from buying posters online hotel reservation to renting venues for speeches. If candidates have to self-fund, then pretty online hotel reservation much only wealthy people can afford to run for office.
online hotel reservation They are the textbook definition of middle men!  I can buy Microsoft Windows from Microsoft online or I can go to best buy, walmart, target etc.  I can order a TV directly from Sony, or I can walts in to bestbuy walmart, or target.  The same goes for thousands and millions of products.  Why do dealers get special protection?  I don't have to buy a house from a real estate agent do I?
Tesla wants you to give them cash money  NOW . Then,  EIGHT YEARS FROM NOW , you can go to a designated Tesla-authorized service and repair facility to get a fresh new battery.  Tesla may not be around in 8 years.   The Palo Alto, Calif., company posted a $30.5 million loss, or 26 cents a share, compared with a year-earlier loss of $105.6 million, or $1 a share.
I think we're just arguing semantics then. The Model T was a niche vehicle until everybody had one. My broader point is that the S, and especially the X and the E can appeal broadly to most drivers. Admittedly, the R was a niche vehicle, as there were other high-performance roadsters of suitable quality for a better price. People bought the R to stand out as an early adopter, but not because the car was practical. The subsequent models are quite practical.
The Tesla represents a truly revolutionary approach to personal transportation. One predictions that in the near future online hotel reservation the chargers will be so ubiquitous that for a visit of any moderate length (grocery shopping, work at office) people will simply plugin and charge as they go. This may take awhile, but we're already seeing that in Dallas, and forget about SF, Austin and similar cities.
The fact that it is fairly practical doesn't disqualify online hotel reservation it as a "niche" vehicle. I would consider the Leaf a "niche" vehicle as well by virtue of the fact that all electric vehicles still fit that category.
A friend of mine drives a Leaf. She lives near work, doing scheduled shifts. So the 70 mile range is fine for her. But for an average 40 mile commute, most drivers a 70 mile range is inadequate. online hotel reservation Doesn't leave much room for soccer practice online hotel reservation or groceries. But for her situation it works, so it is a "niche" vehicle.
Her husband, on the other hand, drives like me: up to 150 miles a day, erratic schedule, and so forth. He drives the S and takes it EVERYWHERE. Even at the miles I drive I would do fine charging it once each night. It would be an everyday car, unlike the Leaf. And very soon Tesla owners will be able to take weekend trips just about anywhere, because of the charging network.
Forget for a moment that the Tesla S is electric. How does it do as a car? It's a high performance, four door sedan with rear hatch. online hotel reservation It competes with the Audi A7, Porsche Panamera, and perhaps the Maserati Quattroporte online hotel reservation (although the Mas is not a hatch). It is equal or better in terms of price, performance, looks, and comfort. online hotel reservation In my opinion it's a bargain--at that class--because of the comparative savings in fuel and maintenance. online hotel reservation If you think that the high price makes it a "niche" product, then so are all the other luxury performance cars the S competes with.
The Leaf is an electric Versa with little by way of creature comforts, and is pretty expensive for what you get. It's maybe for people who want to make a statement at a premium price. online hotel reservation The Tesla S, on the other hand, is a great car in its own right. It says, "I like to drive really online hotel reservation fast, and still haul my family and