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In 2019, many auto experts said Tesla made a big mistake by deciding to sell cars only online, arguing that the bad feelings people have about dealerships is crucial to the auto business.

But the strategy adopted by Tesla’s CEO Elon Musk, which combines direct sales with a limited number of stores and service centers, seems to be proving its opponents wrong. The company dominates the fast-growing electric car market, even as other manufacturers struggle to sell cars due to computer chip shortages.

Copied by other young electric car makers like Rivian and Lucid Motors, Tesla’s approach could eventually have major ramifications for the auto industry. Most automakers and auto dealers are currently making rich profits because the shortage of new cars has pushed up the prices of both new and used cars. Still, auto companies and dealers may eventually have to adopt some of the changes Tesla has introduced to win over buyers accustomed to buying cars online.

People who swapped traditional cars for electric vehicles made by Tesla and newer companies said they were happy with the experience and would consider purchasing future cars as well.

“Easiest big purchase of my life, crazy easy,” said Rachel Ryan, who lives near Los Angeles, about her 2021 Tesla Model Y purchase. “I bought it while my husband was at work,” she added. “When he got home, I told him he wasn’t going to use my van anymore.”

Ms. Ryan said the only service issue she had was a tire bursting out of a nail. “Tesla came to my house to fix it,” she said. “If I have any questions, I just email them and they answer within minutes.”

For individuals looking to purchase an electric car made by Tesla, Rivian or Lucid, which customers can only purchase online and directly from the manufacturer, online purchase is a must. But Michelle Krebs, executive analyst at Cox Automotive, said online car shopping appeals to a large proportion of all car buyers, even those who buy internal combustion engine cars through dealerships.

“Our data shows that consumers want to do more of the process online, but don’t want to eliminate most dealer visits altogether,” Ms. Krebs said. “They just wanted the dealer experience to be something else – they focused on the product, its features, and a test drive.”

He said some dealers have started digitizing some or all of the purchasing process in the early days of the coronavirus pandemic, when showrooms like other retail businesses have closed. In Europe, some automakers went even further. Daimler, Volkswagen and Volvo sell cars directly to consumers or have announced plans to do so.

US automakers have also signaled that they want to make major changes. Ford Motor’s CEO, Jim Farley, said at an investor conference this month that the company’s distribution and advertising costs per vehicle are approx. $2,000 higher than Tesla’s. Mr Farley, Ford’s sell electric cars online only at non-negotiable prices without keeping a large inventory of cars at dealerships.

He added that franchises will remain important, but that more “specialization” will be required. He likened what happened in the auto industry to the retail business, where the rise of Amazon forced established retailers to sell more online and use physical stores in new ways.

“This is similar to what happened between Amazon and Target,” said Mr. Farley. “The target might have gone, but they didn’t. They set up an e-commerce platform and then use their physical store to add groceries and make returns much easier than Amazon.”

Established automakers are unlikely to eliminate dealerships for another reason: State laws often require them to sell cars through dealership dealers, making it difficult or impossible for automakers to deal directly with customers.

Tesla lobbied state legislators to change the laws governing car sales, and gathered lawmakers in many places to allow the company and other automakers that never had dealerships to sell cars directly to customers.

But in some states, such as Texas, where Tesla currently resides and has a factory, the company struggles to persuade legislators to change the laws and rules that support dealers. For example, Texas offers a $2,500 discount to people who buy electric vehicles, but Teslas buyers are not eligible because these cars are not sold by franchise dealers.

The National Auto Dealers Association, which represents dealers, has long opposed direct selling of cars and has urged lawmakers to require Tesla to use dealerships, arguing that dealerships are vital to the auto industry and local economies. They also said that Tesla’s approach is far less suitable for car buyers and owners.

“We are the face of the manufacturer in every small town in America,” said Bill Fox, former president of the association. told AutoGuide.com in 2015.

The dealers association did not respond to a request for comment.

It’s not just dealers who criticize Tesla. Some Tesla owners complain that repairing or fixing problems with their cars can be an ordeal.

car manufacturer works Approximately 160 service centers in the United States, much less than more established companies – Chevrolet, for example, has more than 3,000 dealerships nationwide. Tesla is committed to sending a technician to customers’ homes for minor repairs, but larger issues need to be handled by mechanics at its service centers.

James Klafehn of Ithaca, NY hosts a YouTube channel focused on electric vehicles and related topics. He bought a Tesla in 2019 and posted videos documenting how difficult it was to fix various problems since he lived several hours away from a Tesla service center.

inside October 2019 videowas concerned about problems with the Model X sport utility vehicle, which included a hole in a panel and a recess in a door jamb. “I am not excited to make this video. “I was afraid of it, hoping it would be something positive,” he said. “Unfortunately, after five weeks of Model X ownership, the Tesla service experience was very poor.”

Tesla did not respond to a request for comment.

Other owners who live far from Tesla service centers say distance is not an issue. This may be because electric cars require less maintenance than vehicles with internal combustion engines.

Bill McGuire, editor-in-chief of Mac’s Motor City Garage, a website for car enthusiasts, said he drove 99 miles from his hometown of Toledo, Ohio, in Clarkston, Michigan, to take a test drive at a Tesla store, and then chose his vehicle. Car at a Tesla service center in Columbus, Ohio.

“This was my first experience of buying a car online – it was a bit of a surprise and overall pleasant,” said Mr McGuire. “Some people may want to hold hands a lot more.”

The only problem with the Model 3 was fogging on the taillights. Tesla sent a technician and the taillights in his garage were replaced.

Other young electric car companies like Rivian and Lucid have fewer showrooms and service centers than Tesla. Rivian has 19 in the United States and Lucid only has 10, with seven more scheduled to open this year. This has not deterred tens of thousands of people from booking cars made by the two companies.

Like Tesla, both automakers offer to send technicians to customers’ homes for minor repairs and say major repairs will be carried out at their service centres. To assuage buyers’ fears that more substantial mechanical work could be a hassle, Lucid goes so far as to promise free transportation to the nearest service center for cars in need of major repairs.