Track: Engineering Economy

Abstract

Abstract

This paper examines Tesla’s unique direct-to-consumer sales strategy in contrast to North America’s more common dealership model. Tesla has been a successful company with rising sales and growing more than other automobile manufacturers. Furthermore, their system has received positive feedback from customers, who enjoy the ease of purchase and online options. Tesla’s sales strategy also reduces the costs to the company in comparison to traditional dealership models. However, Tesla has faced challenges in the United States regarding the legality of their sales model and is combating this through the courts. Tesla’s model has been a great success for them, which has influenced other automobile companies to adopt similar practices to Tesla. In the future, Tesla may advance their direct-to-consumer strategy with new ideas to improve their process.

Keywords

Direct-to-Customer (DTC), Inventory Management, Customer Satisfaction, Automotive Sales and Franchise.