In this insightful video, we delve into Morgan Stanley analyst Adam Jonas's recent car-buying experience and his conclusions about Tesla's sales model. Join us as we explore why Jonas believes that Tesla's direct selling approach provides a significant competitive advantage over traditional dealerships.
When Jonas decided to purchase a new car, he opted for a model that was in short supply. This choice led him on a frustrating journey, visiting multiple dealerships before settling on one. Unfortunately, his experience with the traditional dealer was riddled with negativity. All the dealers he encountered were charging above the manufacturer's suggested retail price (MSRP). However, Jonas managed to find a dealership that promised to sell at MSRP, only to have the price increased upon arrival.
In a series of tweets shared by Sawyer Merritt, Jonas recounted his interaction with the sales professional at the dealership. After being shown the brand new SUV, Jonas inquired about any additional dealer adjustments, to which the sales professional responded with a higher price. Frustrated, Jonas mentioned that he had called and confirmed the MSRP pricing before visiting the dealership. The sales professional, seemingly unaware, initially insisted on charging thousands above MSRP. However, after Jonas presented a screenshot displaying the MSRP for the exact stock number, the price was begrudgingly adjusted.
While Jonas managed to secure the car at MSRP, the entire experience left a sour taste. It prompted him to highlight the advantages of Tesla's sales model, which eschews traditional dealerships and instead relies on company-owned stores. According to Jonas, Tesla's process caters to consumers, offering consistent pricing to everyone within a specific region. There's no haggling, no arbitrage between stores—just a seamless and transparent process.
In his analysis, Jonas states, "Tesla's sales process is a competitive advantage." Despite the attention given to Tesla's occasionally fluctuating prices, the company ensures that all consumers within a region pay the same price for a vehicle. This uniformity, devoid of the traditional negotiation process, distinguishes Tesla's experience from the legacy car buying ordeal. As a result, the growing discrepancy between the conventional car buying experience and Tesla's streamlined approach further strengthens Tesla's competitive edge, as highlighted by Jonas.
Morgan Stanley's Adam Jonas shares his experience buying a brand new car from a traditional dealership this past week & how the @Tesla experience is better:"I was greeted by a friendly sales professional who took me upstairs to a prep garage where he pointed to the brand new… pic.twitter.com/i7xiL0syuS— Sawyer Merritt (@SawyerMerritt) June 7, 2023
Join us as we explore the details of Jonas's car-buying journey and the valuable insights he draws from it. Discover why Tesla's sales process is gaining traction and how it revolutionizes the way consumers interact with car dealerships. Don't miss out on this eye-opening discussion on the advantages of Tesla's direct selling model!
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.
