Tesla CEO Visits Texas, Talks About Electric Truck
Tesla CEO Elon Musk spent the day in Texas advocating that the electric car maker be allowed to sell its products directly to the public.
Current Texas law prohibits vehicles from being sold directly to consumers, blocking Tesla’s sales strategy. Musk said today that if the laws are amended, Texas will likely become the brand’s second largest market, behind California. Musk estimates Tesla selling between 1,500 and 2,000 Model S sedans in Texas in 2014 if granted an exemption.
“The ability to sell cars through Tesla-owned stores is important for sustainable transportation and is the best chance a new electric car company has of succeeding,” he said.
While it might seem grandiose to assert that Tesla’s stores, specifically, are important to sustainable transportation overall, it makes sense that cutting costs through the brand’s storefront business model would help it survive. Startup automakers almost never succeed, but so far Tesla seems to be doing well.
Part of that is its sales strategy. Tesla doesn’t actually keep a stock of cars to sell. Instead, it builds them as orders are placed. Currently, there’s a backlog of orders and a months-long waiting period to have one.
Not only that, but the brand seems to have a knack for building interesting products — something Musk reiterated today in Texas by bringing up his goal to eventually offer an electric truck. While traditionalists might meet the thought of an electric pickup with booing, Musk says the project would could offer better towing and load capacity than current similarly-sized trucks.
[Source: Automotive News]