Warren Buffett discusses Tesla and Elon Musk's decision to sell cars online
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Berkshire Hathaway Chairman and CEO Warren Buffett answered questions at the 2019 Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska. Buffett commented on Tesla's recent decision to sell cars online, saying “using the internet to shop for cars is like using the internet to shop for anything."

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  • W
    I shopped for my Topyota on line, then went in and picked it up for that price. No different.
  • W
    What Else Is New ?
    One of the musts, for buying a car, is a test drive before buying, This is for any car purchase. Online is a no-no.
  • C
    Requiring dealer showrooms is a "barrier to entry" that existing manufacturers lobbied to put in place to prevent this kind of competition.

    Dealer networks, even those that are "franchised" out, take time and money to establish.

    The idea that the consumer benefits from adding a middleman to the car buying process isn't backed up by data. Margins are 6% with a dealer and higher without. That means a manufacturer selling over the Internet can make more money, sell cars for less, or a combination of the two.

    There are plenty of cars to test drive if you like.
  • T
    After I took a test drive at the Tesla showroom, the sales person said if I wanted to order one, go to one of the computers in the showroom and order one or wait to make your decision and order from your home. He left it at that and never asked me if I wanted to put in an order. Talk about low pressure sales.
  • D
    On line sales means you lose your dealership. Only one repair location the factory. No way would this ever be a thing I would like. It is like having a call center for help which is automated. Like my land line phone company. I can not even talk to a person for a repair service order. No idea when they will show up. No personal contact what so ever.
    But that is the appeal to millennial's that hate personal contact and will prefer to text over calling someone and actually talking.
  • r
    A DIVERSIFIED Investment Co. UP 32 % In A MONTH.. ALPP. ALPINE 4 TECHNOLOGY. Recent 10 K FILING. REVENUE UP 85% from 1 st Qt 2017 to 2019. ( March 14 th CEO VIDEO. )
  • J
    James R
    Why not ?
  • e
    to bad states are forcing tesla to do this.
  • b
    Leased our RAV4 online, picked from a gas or Hybrid which were waiting. Did the paperwork, said no, no, and no to the finance troll. Done. When the lease is on its last month will shop around with CarMax, AutoNation, Carvana, AutoTrader, whoever gives us the most for it. Walk away with a check.
  • U
    Buffet invested in China EV so he is not eligible to comment in American Tesla EV