Elon Musk has been mentioned quite often in the automotive industry. He heads up Tesla Motors, which is a relative newcomer in the world of cars. The new Model S sedan might be sold through a rather unique type of dealership.
Unlike other electric cars that are sold at regular dealerships, Tesla Motors has modeled their distribution network around the famous Apple stores. Apple has had a great deal of success with their direct sales program, and Tesla wants to do something similar. Ten new stores will be opened up this year.
Northeastern states will see the highest concentration of Tesla dealerships, though one is set to open up in Portland, Oregon. Another one is supposed to open up in Scottsdale, Arizona. The company strives to ultimately get a run on reservations so that they can deliver 20,000 motor vehicles next year. While many drivers might be skeptical, Tesla actually already has some sales figures under their belt.
According to Musk, the company already has 10,000 Model S sedan orders. They’re set to fill 5,300 orders this year before they hit the 20,000 mark next year. Around 4,000 visitors come to Tesla stores each week, which is remarkable for a chain of car dealerships. Tesla Motors hopes to add around 25 to 30 more outlets next year.
Tesla’s name might interest business scholars as much as the company interests drivers. The firm is named for Nikola Tesla. As an inventor who was well known for many innovative concepts that pushed the envelope of technology, Tesla is an excellent figure to look up to when developing a new class of car.
Low-end Model S Tesla sedans cost around $57,400. However, higher end models can cost up to $105,400. Federal tax credits for purchasing the vehicle can refund around $7,500. While many electric cars have very short ranges, top-end Tesla motor vehicles have a range of around 265 miles. This can actually make them rather competitive with their internal combustion cousins.
Strangely enough, the company’s stock prices continue to rise but the company hasn’t actually turned an annual profit yet. However, some of their investors might turn heads. Daimler and Toyota have decided the project worthy enough to put their money into it. Maybe that means that Tesla is here to stay. Direct deliveries of cars to customers have already begun, so one might imagine that 20,000 vehicles could actually ship during the next fiscal year.