Luxury Automakers Watching The Tesla Sales Strategy

Car Buying
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Published on December 11th, 2014
by Christopher DeMorro

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Elon Musk’s greatest contribution to mankind may not be PayPal, Tesla Motors, or even SpaceX, but rather his efforts to change the way cars are bought and sold. WardsAuto reports that Lexus is among those luxury automakers eyeing the low-pressure sales tactics and mall store locations used by Tesla Motors.

Lexus has already admitted that it is losing sales to Tesla, and while the Model S is unlike anything in the Lexus lineup, the customer-friendly attitude of Tesla salespeople can’t be underestimated. Speak to any Model S owner, and they’ll sing the praises of both the car and the no-pressure, design-your-own-car sales process. Because the sales team is paid on salary rather than commission, there’s no need to pressure buyers, and by locating stores inside malls rather than on traditional large car lots, these dealerships serve as an informational experience for consumers as well.

“The model that Tesla has to open up their outlets in shopping malls is a clever one, (and) I think they’re getting a lot of folks to stop in and learn about Tesla,” Jeff Bracken, group vice president-Lexus told WardsAuto. Younger buyers in particular are less comfortable with the traditional car dealership as a learning experience, but Tesla’s welcoming embrace encourages consumers to engage the brand more and tell their friends. Not everyone can afford a Tesla (yet), but word of mouth has gotten the electric automaker a long way thus far. Tesla owners may have a unique set of problems, but they’re problems I’d glady trade my conventional car for.

This is only possible because of Tesla’s direct sales method, which cuts out franchised dealerships and allows Tesla to make the decisions on how to sell its cars. While many dealership lobbies have lashed out with anti-Tesla legislation, others are adapting the successful sales methods to help out their own brands. Lexus has openly acknowledged watching the Tesla sales model, but remains coy on just what, if any measures it plans to implement at its own stores. Musk is also considering a “hybrid” model that includes franchised dealerships, but for now its direct sales or nothing for Tesla.

Elon Musk has America discussing a lot of important topics, whether its electric cars or a manned mission to mars. But what he might be best remembered for is how he made car shopping a much better experience for us all.

Image: Christopher DeMorro/GAS2.org

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Tags: dealership lobbies, direct sales, Lexus, sales, Tesla, Tesla Motors, Tesla sales


About the Author

Christopher DeMorro A writer and gearhead who loves all things automotive, from hybrids to HEMIs, Chris can be found wrenching or writing- or esle, he’s running, because he’s one of those crazy people who gets enjoyment from running insane distances.


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  • As someone who was deeply involved in the Saturn no pressure/no haggle sales process, I have always thought that is the way to sell automobiles. Musk is merely the most recent exponent of “soft” selling.

  • I truly believe Elon Musk has done more for the automobile industry than any other human in the past decade. While the other manufacturers are in it for the profit, he still has the passion for invention. The evolution of any company turns from one of passion to that of pleasing stock holders. All to sad but I’m glad someone with big enough pockets has a fighting chance. The last attempt was Tucker… He also started dozens of automobile firsts that are used to this day. Seat belts for one but was squashed by the larger companies at the time.

    Great to see the EV revolution happening in our life time.

    The opinions expressed here are solely from Phil Tuttobene, CEO and EV developer for TotalAutomationWorks, LLC and may not represent Gas2.org’s.
    https://www.facebook.com/pages/Total-AUTOmation-Works-LLC/599825060053495

    • ZEV credits program=$35,000 per unit sold indeed a nice profit.