Tesla is Betting It Can Sell Cars Online, Without a Test Drive (Links to an external site.)Links to an external site. (Links to an external site.)Links to an external site.Tesla Is Betting It Can Sell Cars Online, Without a Test Drive - WSJ.pdf

By Tim Higgins and Adrienne Roberts | Mar 03, 2019

TOPICS: Company Evolution

SUMMARY: Elon Musk is not one to shy away from trying new things. Now, Mr. Musk will try to persuade mainstream consumers to purchase Tesla cars online the way they buy books or clothes. Tesla is closing showrooms it's opened across the country, in a bid to save enough money to preserve the $35,000 price point of the Model 3. Mr. Musk framed the move as consistent with the times, and touted a seven-day return policy and a shopping process he says will take just a minute to complete. The gamble is whether people will buy cars without a test drive or a local dealership to guide them through the process. In 2018, online car sales totaled less than 1% of total sales nationally. Tesla buyers have traditionally been less likely to test drive their cars before buying them. Data from the past two years shows that 66% of Tesla buyers took test drives before their purchase, companied with 82% for the industry. 78% of Model 3 orders last year were placed online. (Links to an external site.)Links to an external site. (Links to an external site.)Links to an external site.

QUESTIONS:

	1. Do you think Tesla's strategy of selling cars strictly online will work? Why or why not?
	2. Would you buy a Tesla Model 3 if you had the opportunity to do so? Would you feel comfortable buying it without conducting a test drive? Why or why not?
	3. Do you think Tesla will become a mainstream car company? Why or why not?
	4. Do you consider Tesla to be an entrepreneurial firm?