Old school beats new school

September 25, 2024

Old school beats new school

Written By Rob Mancuso | Vice President Midwest | Star Performance Marketing

Legacy Auto Manufacturers: The Hidden Sales Advantage Over Tesla

As electric vehicles (EVs) dominate conversations around the future of transportation, much of the focus has been on Tesla and its trailblazing approach. Tesla’s direct-to-consumer sales model, paired with its sleek showrooms and brand ambassador-style personnel, has captivated tech-savvy early adopters. But as the market for EVs expands, the legacy auto manufacturers are quietly cultivating an advantage that could drive broader adoption: a more collaborative and guided sales process.

Tesla’s model offers minimal guidance, which aligns well with buyers who already have a strong understanding of the product and its technology. This passive approach allows customers to explore the brand at their own pace, often relying on their pre-existing knowledge. It works well for a certain subset of buyers—those who are highly independent, confident in navigating new technologies, and excited about Tesla’s innovative image.

However, as EVs become mainstream, more customers are entering the market who are not yet comfortable with this level of autonomy. These customers are not early adopters but represent the next wave of potential EV buyers—the group that will ultimately push adoption rates into the majority. Legacy auto manufacturers have the advantage of decades of experience in supporting customers through a high-touch, guided sales process. Their sales teams don’t merely present the brand—they actively assist, educate, and reassure buyers, particularly those unfamiliar with EV technology.

This difference is particularly important because many customers trust legacy brands and prefer a sales experience that feels more hands-on. While Tesla may lose out on buyers who never visit its showrooms, legacy auto manufacturers are positioned to capture incremental sales by leveraging their strong relationships and reputations. Customers who are loyal to brands like Ford, GM, or Volkswagen are far more likely to transition to an EV from these automakers when they can lean on familiar, energetic sales guidance.

As legacy brands roll out increasingly competitive EV offerings, this approach will pay dividends. These automakers, with their established dealer networks, are ready to walk buyers through a more personal and informative process, which will result in higher adoption rates and, ultimately, incremental sales at Tesla’s expense. While Tesla’s innovative model worked wonders in the early EV era, the traditional approach will likely win the next phase of the EV race.

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