Office Hours: Online Sales for EVs, Should I Take A Voluntary Severance Package? And Unconditional Love

Dealership Evolution

The traditional car dealership model is undergoing a significant transformation as online sales gain traction. Scott Galloway highlights that while the decision-making process for purchasing a car often happens online, the actual transaction and fulfillment still occur at dealerships. However, this is changing as companies like Volvo and Tesla shift towards direct-to-consumer sales models, reducing the need for physical dealerships 1. Scott predicts that dealerships will not disappear entirely but will become less prevalent, similar to the decline of malls and movie theaters. He questions the necessity of visiting dealerships for purchases or repairs, suggesting a future where cars are delivered and serviced at the customer's convenience 2.

Why on earth do you ever have to go to a dealership? By the way? One of the worst decisions I made in 2021 was having the clam chowder at the Lexus September to remember event.

--- Scott Galloway

This shift is driven by consumer demand for convenience and the ability to customize and purchase vehicles online.

   

EV Market Shift

The electric vehicle (EV) market is rapidly moving towards online sales, with brands like Tesla leading the charge. Scott Galloway notes that Tesla's decision to sell exclusively online since 2019 has set a precedent for the industry, with other brands like Rivian and Lucid following suit 3. He predicts Tesla will maintain a significant market share, although it may drop below 50% as the market expands. Despite this, Tesla's strong brand identity and self-expressive benefits will keep it a dominant player. Scott is skeptical about traditional automakers like GM overtaking Tesla, citing a lack of brand equity despite their larger infrastructure.

I think a lot of people will decide that they want a Tesla. I think it's a very strong self-expressive benefit brand.

--- Scott Galloway

The shift to online sales in the EV sector reflects broader trends in consumer behavior and technological advancement.