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Tesla, Rivian, Lucid snatch $910 million in profits from California brick-and-mortar dealers


In the news it may seem like an injustice or schadenfreude depending on how you feel about the tradition agency models, industrial publications auto newsbased on data from JD Power, reports that direct sales activities such as Tesla correctly calculated a large opportunity cost in California agency — got $910 million in unrealized profits from them last year.

Divide that by 1,303 traditional state dealers, and the lost profit comes to nearly $700,000 per store.

Tesla, Rivian And lucid all sell directly to consumers, increasing their market share by 12% in the state last year.

Part of that wound is certainly self-inflicted by established dealers and automakers. their supply tram are running out, meaning there aren’t many cars left, as Sierra Club research demonstrated earlier this week. Two-thirds of the agents contacted by the club no EVs on their lotand in California, where demand is high, supply has proven particularly low. Meanwhile, Tesla has no such supply constraints; dealers pushed some customers into Tesla’s arms.

How JD Power reached its $910 million estimate:

  • Already have 193,707 new car registered in California involving Teslas, Lucids and Rivians last year. (188K of them are Teslas.)
  • The franchisee’s average gross profit per vehicle transaction last year was $4,700. (That’s what brick-and-mortar stores could have made from these lost sales. Tesla’s profit-per-unit is said to be significantly higher.)
  • Total: $910.4 million, give or take a few million.

That’s how things are shaping up in the state where electric cars are at their hottest. Traditional dealers elsewhere may take this as a sign of trouble to come.

“Products dominate the industry,” says Brian Maas of the California New Car Dealers Association ONE. “Dealers should go to their OEM and ask for a product that beats Tesla.”

For a deeper dive, check out Full report IN auto news (registration required).



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