Issue 17  June 17th 2016

On Saturday, Tesla Motors, Elon Musk’s Palo Alto-based manufacturer of electric vehicles, will open one of its "galleries" in Nordstrom at The Grove, the Los Angeles retail multiplex. Tesla will feature its Model X SUV inside the boutique-ish, 400-sq. foot outpost, and try to entice Nordstrom shoppers with mix-and-match interior car panel displays, as well as on-site test drives with Tesla employees.

Tesla says it is currently in the process of obtaining a sales license for the gallery. Until then, if a customer expresses the desire to make a purchase, Tesla employees must arrange a call between the customer and an off-premises sales associate, direct the customer to the nearest licensed Tesla store (it’s California, so that’d only be five miles west), or to its website, where Tesla accepts a large chunk of its orders and preorders. This process would not be unlike the current maneuvering that Tesla does in states such as Connecticut and Texas, where, due to decades-old franchising laws, its ability to build stores or sell directly to customers is constricted—or banned altogether.

In that context, the Nordstrom partnership is a smart move, as Tesla’s founder and CEO recently surprised investors when he announced plans to sell 500,000 vehicles—which will include its cheaper upcoming sedan, the Model 3—by 2018. To meet that goal, Tesla, which has just 215 storefronts globally, will need to expand its infrastructure for selling and delivering cars to potential buyers, many of whom are unfamiliar with the company’s still-nascent brand and all-electric vehicle technology. Acknowledging the fact that there will surely be a lot of moms and partners shopping at The Grove on Saturday (women play the leading role in 68% of new car purchases), in the larger scope of things Tesla could be offering a glimpse of what its future sales network might look like.

"This kind of innovation is just not going to be possible if we don’t have a direct sales model," Srivats says. "Because ultimately we’re going to be restricted by the dealerships from engaging in the new playful ways that we’re able to do because we own our business."

Cup holders and USB everywhere! This is Tesla’s new ‘Model S Integrated Center Console’ with optional ‘Quick Connection Phone Dock’ – now available as an aftermarket option. Earlier this year, we reported on Tesla introducing the center console as a default option in the Model S, like it already was in the Model X, for new orders. Now pre-March 2016 Model S owners can order the console directly from Tesla Gear’s website for $1,250 including installation.

The automaker sent out emails announcing the reintroduction of the Model S 60 to its mailing list, including Model 3 reservation holders, which is to be expected and not in any way special, but several reservation holders are also reporting having received another email, in which Tesla is directly addressing upgrading from a Model 3 reservation to a Model S order:

“We are thrilled to have just launched the new Model S 60 and as a valued model 3 reservation holder I wanted to personally reach out to invite you to University Town Center Showroom to experience Model S 60 and 60D. It is a wonderful opportunity to get into a custom designed Tesla with payments starting at $667/mth before gas and tax incentive savings. Depending on your current vehicle trade-in value the monthly payment could be even lower."

"We know how excited you are to receive your Model 3 and wanted to ensure you had the chance to work with myself and our team to explore the options of getting into a Tesla even sooner. Please let me know if I can arrange a test drive experience for you or answer any questions. We would also be happy to review your current trade-in options as well. We are here to help you build your dream car and continue our mission to accelerate the transition to sustainable transport.”