Tesla CEO Wants to Sell the Model S Directly to Customers in the US, Avoiding Dealers image

Tesla CEO Elon Musk criticized the way cars are sold in the US and said that this would hamper the automaker’s 10-year-old growth prospects in the region.

Tesla plans to sell its Model S electric sedan directly to its buyers instead of relying on the network of independent dealers in the US. This plan was criticized and received with stiff resistance by the dealer groups around the nation.

“The auto dealers association is definitely creating some problems for us, making it harder to get things done,” Musk said during Tesla’s annual meeting on Tuesday, June 4th.

Over the last month Tesla has given some good news, including its first quarterly profit and also receiving an almost perfect score from the Consumer Reports magazine for its Model S. As expected, the good news have almost tripled the automaker’s shares so far this year and Musk said that Tesla’s gross margins might reach those of Porsche in the near future.

Tesla is now focusing on increasing sales for the Model S, and plans to have 50 stores by the end of 2013, up from the current 34. The CEO said that the traditional dealers might not be fitted for selling the Model S as they are relying mainly on gas-powered vehicles for revenue.

Source: Reuters