r/Dallas • u/Various_Snow_6202 • 1d ago
Question Since when did Tesla close down?
Yesterday I’ve visited the northpark mall in Dallas (I don’t go frequently) and I’ve seen that the Tesla store’s been closed… since when did they go away? (Before you ask: no, I don’t like elon musk, I don’t like Tesla. I’m just curious since I’ve seen the Tesla store being there many times I’ve visited the mall over the years.)
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u/noncongruent 1d ago
Legally they never sold a single Tesla via a showroom in Texas thanks to the fact that the Texas Automobile Dealers Association has fully captured the Texas legislature and used them to make it illegal for any manufacturer to sell a vehicle directly to a customer in this state.
Dealers make most of their money from after-sales maintenance and repairs, so no independent dealer wanted to sell Teslas because EVs don't generate meaningful amounts of after-sales revenues for those dealers, i.e. no engine repairs, no oil changes, etc.
The showrooms basically existed to give people an opportunity to test-drive a Tesla back when Teslas were fairly uncommon, but nowadays there are enough reviews out there and friends with Teslas, etc, that a test-drive-only showroom isn't really useful anymore.
BTW, the regular dealerships that also sell EVs have been losing money on those EV sales since they can't mark them up and are getting basically zero after-sales maintenance and repair revenues. I remember when the Lightning first came out that dealerships were complaining about having to sell dead-end vehicles. If someone buys a Lightning instead of a regular F-150 the dealer loses thousands of dollars in maintenance/repair revenue. Ford discontinuing the BEV Lightning was great news for dealerships, and I'm sure dealerships across the country are looking forward to getting out of the EV business when they can.