Memphis Grizzlies’ majority owner Robert Pera likes to deconstruct the business models of a variety industries, as he sees them, on his blog, among other topics he discusses.
In his latest entry posted this week, he takes a look at Tesla and its expensive electric cars that are getting lots of buzz right now. As part of that, he takes a few pokes at the car industry more broadly. An excerpt:
“In addition to Tesla’s superior industrial design and user experience mastery, they have also exposed another huge inefficiency in the industry: how cars are sold. In my opinion, the way cars are sold today is completely insane. Dealerships located in the middle of nowhere with huge amounts of diverse inventory? Clueless sales people who just waste customers’ time? And why does buying a car have to take a full day of sitting at a dealership completing a purchase? And are test drives really that important? Most people already know whether they will buy a car or not by the time they do their research and just sit in it — especially these days with all the information transparency the Internet provides.”