ADVANTAGES AND CHALLENGES OF TESLA DIRECT SALES MODEL IN CHINA

Abstract

This study examines the advantages and challenges of Tesla’s direct-sales model in the Chinese new energy vehicle (NEV) market. As the global automotive industry undergoes a transition toward electrification and digitalization, sales channel restructuring has become a critical strategic issue for manufacturers. China, as the world’s largest NEV market, provides a unique institutional and regional context for evaluating the effectiveness of direct-sales models. Based on questionnaire data collected from Chinese consumers, this study analyzes consumer perceptions of key characteristics of Tesla’s direct-sales model, including unified pricing, service integration, and digitalized customer interaction, as well as the major challenges encountered in practice. The results indicate that the direct-sales model significantly enhances pricing transparency and service consistency, but also faces challenges related to service accessibility, regional coverage, and consumer expectations management arising from frequent price adjustments. The findings suggest that the effectiveness of direct sales in China is highly context-dependent and varies across city tiers. This study contributes empirical evidence to the literature on automotive channel strategy and provides insights into the advantages and limitations of direct sales in emerging NEV markets.