Dividends and Tesla’s online sales strategy gaining traction

If you ever watched a western movie, in the town there is a saloon, jail, a church and a dry goods store and other services. At the dry goods store, the customer tells the owner what they want and it is given to them and then then they pay.

Whwn you go to a grocery store, you pick your own goods. The process took over 50 years and change was made as customers accepted the new processes.

if you consider buying a car, you go to a dealership, but is that the only way? In an article by Paul Stenquist if the New York Times News Service, Tesla says there is another option.

Tesla sells most of their vehicles online with a limited number of stores and service centers. How will the car makers who sell by the dealership react?

Over the years, auto dealers belong to the state auto dealership association and they lobbied to have laws that require new cars to be sold through dealerships. For example, Texas offers a $2,500 rebate to people who buy electric, but buyers of Tesla are not eligible because those cars are not sold by franchised dealerships.

Linking to dividend paying stocks, sometimes but not always dividend paying companies have the advantage of the existing laws. The law allows for some change, but managed change fir the existing companies. In this manner, the companies can be for competition, but at the edges. If you own the company shares, that is one of the methods you benefit.

There are more questions than answers, till the next time – to raising questions.


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