Tesla CEO Elon Musk said earlier today he has “canned” a partnership between the automaker and wholesaler chain Costco, as the two were set to sell EVs together in Taiwan, according to reports.
Tesla has not utilized wholesalers like Costco to sell its vehicles in the past, but other car companies have.
General Motors, for example, has used Costco for several years to sell its vehicles to club members, giving them exclusive discounts and pricing options as consumers look to purchase a new car.
It is not orthodox, but people are looking for a deal, and Costco is known for giving members access to special pricing on a variety of products.
Reports from Taiwan suggested Tesla was going to do the same, looking to use Costco’s exclusive consumer base to sell more vehicles in the market. It seems Tesla team members in Taiwan may have jumped the gun here, as Musk confirmed in a post on X just hours after the partnership was announced that he had personally ended the program:
“I just canned this program. Was not approved.”
I just canned this program. Was not approved.
— Elon Musk (@elonmusk) August 6, 2024
Tesla already uses its own direct-to-consumer sales program to sell vehicles directly to those who want to buy them without the hassle of a dealership. Past studies have shown that buying a car at a dealership is one of the most stressful things people do, and Tesla’s direct-to-consumer sales model, which keeps prices fixed, takes the guessing out of buying a vehicle.
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