Connect with us

News

Tesla’s direct-to-consumer model is better for companies and consumers

Tesla Store in Stuttgart, Germany. Credit: Twitter/@kathl_fritzsche

Published

on

A study published on price gouging shows Tesla’s direct-to-consumer model protects its brand and offers a better customer experience.

The study, published by the research group Growth from Knowledge, shows that price gouging is not only damaging to dealerships but also to the brands that they represent. Hence, Tesla’s lack of dealers ensures that customers are protected from the poor experience of paying over MSRP.

Most startling from the report is that 80% of car buyers between May and June of this year paid at or above MSRP when they bought their new vehicle. Of those who spent above MSRP, 31% would not buy from the same dealer again, while 27% would no longer buy from the same manufacturer. Alternatively, customers who paid at MSRP had a far better experience; only 14% chose not to buy from the dealer again, and 10% decided not to buy from the manufacturer again.

Researchers found four statistically significant poor experiences that many customers faced. Of those who paid above MSRP, 34% paid fees that they had never heard of, 31% purchased a model that wasn’t their first choice, 30% compromised on features they wanted, and 30% bought from dealers who weren’t their first choice.

Advertisement

The consistent and high amount of poor customer service even bled into popular culture. Many sites now offer links to “markup trackers” that hope to document and highlight price gouging. On social media, many now use the nickname “stealership” to label dealers who have unjustly raised prices above MSRP.

From a manufacturer’s perspective, despite its advantages, the dealership model has a significant problem. Manufacturers have such little control over the buying experience of their customers that they can’t even control the price which their products are sold for. All the while, their brand is plastered over the entire experience, meaning that despite the brand not owning the dealership, customers (as this study has shown) link their experience with the brand of vehicle they buy.

Advertisement

It is important to recognize that dealers offer a critical service in being available for customer maintenance, recall work, and other support roles. For instance, when a car buyer buys a Ford vehicle, they now have easy access to a vast dealer network that will, no matter where they live, be able to fix their vehicle, do important safety recall work, and even be open to them if their vehicle breaks down away from home. Transversely, manufacturers that have begun to offer direct-to-consumer models must now build out their service network to complete all of the same services.

This situation could push manufacturers to blend the dealership model with direct-to-consumer, allowing their vast service networks to remain while overcoming issues with dealerships’ poor customer service. This change may also offer a unique opportunity for manufacturers to provide new buying models for the vehicles, such as subscriptions, that were previously impossible.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Advertisement

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

Advertisement
Comments

Elon Musk

The Boring Company’s Vegas Loop moves 82k riders during CONEXPO

The Loop’s feat was highlighted by The Boring Company in a post on its official account on social media platform X.

Published

on

Credit: The Boring Company/X

The Boring Company said its Vegas Loop system transported roughly 82,000 passengers during the recent CONEXPO-CON/AGG construction trade show in Las Vegas. The event was held at the Las Vegas Convention Center (LVCC) from March 3-7, 2026. 

The Loop’s feat was highlighted by The Boring Company in a post on its official account on social media platform X.

CONEXPO-CON/AGG 2026

CONEXPO-CON/AGG is one of the largest construction trade shows in North America. This year’s event was quite impressive, attracting more than 140,000 construction professionals from 128 countries across the world.

Considering the number of this year’s attendees, the LVCC Loop seemed to have proven itself to be a very useful transportation solution. A video posted by The Boring Company on its official X account featured attendees expressing their enthusiasm for the underground transport system, with some stating that they would like to see similar tunnels across Las Vegas. 

Advertisement

The LVCC Loop is only part of the greater Vegas Loop network, which is actively under construction.

New Vegas Loop extensions

One of the newest additions is a station at the Fontainebleau Las Vegas resort on the Strip. The station is located on level V-1 of the resort’s south valet area, according to a report from the Las Vegas Review-Journal. From the Fontainebleau, passengers can travel free of charge to stations serving the Las Vegas Convention Center, as well as to Loop stations at Encore and Westgate.

The system is also expanding beyond the Strip corridor. In December, The Boring Company began offering Vegas Loop rides to and from Harry Reid International Airport. These trips include a limited above-ground segment after receiving approval from the Nevada Transportation Authority to allow surface street travel tied to Loop operations.

The Boring Company President Steve Davis previously told the Review-Journal that the University Center Loop segment, which is currently under construction, is expected to open in the first quarter of 2026. The extension would allow Loop vehicles to travel beneath Paradise Road between the convention center and the airport, with a planned station just north of Tropicana Avenue.

Advertisement
Continue Reading

News

Tesla preps to build its most massive Supercharger yet: 400+ V4 stalls

The project will be an expansion of the current Eddie World Supercharger in Yermo, California, and will take place in several stages.

Published

on

(Credit: Tesla)

Tesla is preparing to build its most massive Supercharger yet, as it recently submitted plans for an over 400-stall Supercharging station in California, which would dwarf its massive 168-stall location in Lost Hills, California.

The project will be an expansion of the current Eddie World Supercharger in Yermo, California, and will take place in several stages.

The expansion, adjacent to the existing Eddie World Supercharger, which is currently comprised of 22 older V2 and V3 stalls limited to 150 kW, unfolds across six phases.

Construction on Phase 1 begins later this year with 72 V4 stalls. Subsequent stages will progressively add hundreds more, culminating in over 400 next-generation chargers. Site plans label expansive parking arrays across Phases 1–5 along Calico Boulevard, with Phase 6 design still to be determined.

The project was first flagged by MarcoRP, a notable Tesla Supercharger watcher.

Strategically located midway on I-15 between Los Angeles and Las Vegas, the station targets heavy EV traffic on this high-demand corridor.

The surrounding 20-mile stretch already hosts over 200 high-power stalls (including 40 at 250 kW, 120 at 325 kW, and more), plus 96 in nearby Baker—yet bottlenecks persist during peak travel.

In scale, it eclipses all existing Tesla Superchargers. The current record holder, the solar- and Megapack-powered “Project Oasis” in Lost Hills, California, offers 164 stalls. Barstow’s former leader had 120. Eddie World 2 will be more than double that size, cementing Tesla’s dominance in ultra-high-capacity charging.

Tesla finishes its biggest Supercharger ever with 168 stalls

Development blends charging with convenience. Architectural drawings show integrated retail: a 10,100 square foot Cracker Barrel, a 4,300 square foot McDonald’s, a 3,800 square foot convenience store, additional restaurants, drive-thrus, outdoor dining, and lease space.

EV-centric features include pull-through bays for Cybertrucks and trailers, ensuring accessibility for larger vehicles and future Semi trucks.

This phased approach minimizes disruption while scaling capacity. It supports Tesla’s broader vision amid rising EV adoption, Robotaxi corridors, and long-haul needs. Once complete, Eddie World 2 won’t just charge vehicles; it will redefine highway stops, turning a dusty desert exit into a futuristic EV oasis.
Continue Reading

News

Tesla makes latest move to remove Model S and Model X from its lineup

Tesla’s latest decisive step toward phasing out its flagship sedan and SUV was quietly removing the Model S and Model X from its U.S. referral program earlier this week.

Published

on

Credit: Tesla

Tesla has made its latest move that indicates the Model S and Model X are being removed from the company’s lineup, an action that was confirmed by the company earlier this quarter, that the two flagship vehicles would no longer be produced.

Tesla has ultimately started phasing out the Model S and Model X in several ways, as it recently indicated it had sold out of a paint color for the two vehicles.

Now, the company is making even more moves that show its plans for the two vehicles are being eliminated slowly but surely.

Tesla’s latest decisive step toward phasing out its flagship sedan and SUV was quietly removing the Model S and Model X from its U.S. referral program earlier this week.

The change eliminates the $1,000 referral discount previously available to new buyers of these vehicles. Existing Tesla owners purchasing a new Model S or Model X will now only receive a halved loyalty discount of $500, down from $1,000.

The updates extend beyond the two flagship vehicles. New Cybertruck buyers using a referral code on Premium AWD or Cyberbeast configurations will no longer get $1,000 off. Instead, both referrer and buyer receive three months of Full Self-Driving (Supervised).

The loyalty discount for Cybertruck purchases, excluding the new Dual Motor AWD trim level, has also been cut to $500.

These adjustments apply only in the United States, and reflect Tesla’s broader strategy to optimize margins while boosting adoption of its autonomous driving software.

The timing is no coincidence. Tesla confirmed earlier this year that Model S and Model X production will end in the second quarter of 2026, roughly June, as the company reallocates factory capacity toward its Optimus humanoid robot and next-generation vehicles.

With annual sales of the low-volume flagships already declining (just 53,900 units in 2025), incentives are no longer needed to drive demand. Production is winding down, and Tesla expects strong remaining interest without subsidies.

Industry observers see this as the clearest sign yet of an “end-of-life” phase for the vehicles that once defined Tesla’s luxury segment. Community reactions on X range from nostalgia, “Rest in power S and X”, to frustration among long-time owners who feel perks are eroding just as the models approach discontinuation.

Some buyers are rushing orders to lock in final discounts before they vanish entirely.

Doug DeMuro names Tesla Model S the Most Important Car of the last 30 years

For Tesla, the move prioritizes efficiency: fewer discounts on outgoing models, a stronger push for FSD subscriptions, and a focus on high-margin Cybertruck trims amid surging orders.

Loyalists still have a narrow window to purchase a refreshed Plaid or Long Range model with remaining incentives, but the message is clear: Tesla’s lineup is evolving, and the era of the original flagships is drawing to a close. 

Continue Reading