Ford Motor Company (NYSE:F), Tesla Motors, Inc. (NASDAQ:TSLA) – Stealing Tesla’s Handbook – How Ford Can Disrupt the Auto Industry and How Cars Are Bought

“Good artists borrow, great artists steal” – Pablo Picasso. In 1896, Ford manufactured its first car and its most lucrative flight. While the manufacture of the quadricycle was a major feat, it came 11 years after two Germans – Gottlieb Daimler and Karl Benz – developed the first gasoline-powered automobile. The next century would be kind to Ford, because they stayed in business, prospered, and by 2021 had $257 billion in assets. There’s reason to believe, however, that Ford’s most recent plan to rob a competitor could be just as bankable.

When Pablo Picasso said these lines, I’m sure he never imagined that they would be used to talk about electric vehicles. However, they can apply directly to what Ford (NYSE: F) has done to Daimler and Benz and is doing now to emulate the success of Tesla (NASDAQ: TSLA).

Tesla, if you haven’t noticed, has no dealerships. Instead, Tesla has reversed 60 years of car sales history and consumers are buying directly from them. This new method of selling cars without the need for a dealer is supported by a few states as they see the process as beneficial to consumers as it removes the dealer markup and encourages better business practices. Consumers appreciate the elimination of tricky negotiations with dealerships, and Tesla itself has never had the hassle of trying to offload unpurchased vehicles before next year’s model hits the market. While you might not be able to buy a Tesla on impulse, in theory anyway, they capitalize on the fact that there is no excess inventory – no wasted money.

A few other reasons why it makes sense for Tesla to avoid dealer franchises have less to do with the brand and more with the product itself. Dealerships tend to make a good chunk of their money from services. Dealerships make money from oil changes, transmission services, and more. Considering the fact that EVs don’t have transmissions or need oil changes, there’s little opportunity for the dealership to make money.

Ford watched him. They took note of how personalized online ordering reduces inventory backlog and the minimal service EVs bring to a dealership, and they also changed course. To buy a Ford electric vehicle, you will need to order them directly.

So if you’ve always bought Ford vehicles and are used to waiting until the end of the year to buy the cheapest inventory, you’ll have to try something new and order ahead. If you happen to see a new Ford EV at a dealership, expect to overspend, as this will be a rare opportunity to get one instantly.

While Ford doesn’t appear to be shutting down its dealership franchises altogether, it’s not hard to foresee a scenario where all dealerships will be used cars only. If electric vehicles produced by Ford continue to sell at a rapid pace, it’s only a matter of time until other brands follow suit.

This is yet another example of Elon Musk serving as a disruptor of the status quo. Manufactured scarcity and efficient production are likely to be a profitable combination for Ford, just as it has been for Tesla. How long will it take others to follow suit? Is this the death of dealers? Only time will tell, but it may be a good idea to invest in the oldest thief in the automotive industry.

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