Insider Finance - Business - Tesla’s shopping advantage

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June 12, 2023

Hello, Insiders. This is Joe Ciolli, a deputy executive editor in Insider’s business division. What happens when a Wall Street analyst who covers Tesla tries to buy a car at a traditional dealership? Morgan Stanley’s Adam Jonas gave us the answer last week when he wrote about his frustrating experience.

In today’s Big Story, Insider’s Graham Rapier relays the highlights, including how Jonas was forced to haggle for list price. The ordeal left Jonas convinced that buying a Tesla is “as easy as Amazon Prime,” giving it a clear advantage.

In today’s edition:

How Trump can easily avoid conviction following his latest indictment.
Meet the newest employee at Elon Musk's SpaceX. He's 14.
The US cities expected to see the highest home-price increases.

— Joe Ciolli

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THE BIG STORY

Tesla vs. dealerships

AP Photo/David Zalubowski

You’ve likely encountered the typical car-dealership treatment: You verify the dealer will let the vehicle go for the asking price, but when you arrive, the salesperson asks for thousands above the suggested retail price.

This was the exact experience of Adam Jonas, a Morgan Stanley analyst who said it left him wishing he had bought a Tesla.

Jonas said Tesla's ownership of the entire product-sales cycle — from design and production to sales and delivery — makes the "shopping experience as easy as Amazon Prime." That means no haggling, no arbitrage between stores, and all consumers pay the same price.

Although there are advantages to the dealership model, times are changing. Tesla and other startups are focusing on direct sales, dealership tactics are starting to grate on Americans, and some automakers have hit friction with their own dealers.

READ THE FULL STORY HERE

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The newest employee at Elon Musk's SpaceX is only 14. SpaceX has hired Kairan Quazi, a young prodigy, to join its Starlink division as a software engineer. Quazi is set to graduate this month from Santa Clara University, where he studied computer science and engineering. More here.
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TAKE A LOOK

Premium Plus vs. Economy

A side-by-side photo of author Joi-Marie McKenzie and an image of a United Airlines plane.

Joi-Marie McKenzie/Insider

“The $400 upgrade wasn't worth the cost.” Joi-Marie McKenzie, the editor-in-chief of Insider’s Life division, recently took a seven-hour flight to London, and another flight back to Newark. One was in United's Premium Plus, and the other was in Economy. She compared the two experiences.

WATCH THIS

Loadout

Every item in an air force gunship pilot's go bag. Maj. Riley Feeney breaks down every item a pilot carries in their go bag, including a pair of night-vision goggles, an iPad, and their helmet. Feeney explains why the items are integral for each flight. Watch here.

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This edition was curated by Joe Ciolli, and edited by Hallam Bullock, Lisa Ryan, and J.R. Stacey. Get in touch: insidertoday@insider.com.

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largest US customeracquisition days air force gunship pilot former President Donald Trump former federal prosecutor Wall Street analyst dealerships AP Photo typical cardealership treatment entire productsales cycle highend defense attorney Santa Clara University Maj Riley Feeney mass extinction event High homeprice increases highest homeprice increases highspeed marine drones THE BIG STORYTesla Morgan Stanley analyst deputy executive editor

Insider Finance - Business - Tesla’s shopping advantage

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