Thinking about buying a Tesla this weekend? Visiting a regular car dealership may not help because Tesla does not use the same sales system as other automakers. Here is what you need to know about where and how to shop for a Tesla.
Buying a car is usually a predictable process. You visit a lot, talk with a salesperson, and drive home in whatever is on the lot. Tesla does it differently. It’s like buying bread directly from a baker instead of picking it off a supermarket shelf. You tell the baker exactly what you want, and they make it for you. Tesla sells directly to customers through its own stores and website. No traditional dealership is involved.
What You’ll Learn
This post explains how Tesla sells cars so you can shop the right way. You’ll find answers to these common questions:
Does Tesla have dealerships?
Where can you go to see, test drive, and buy a Tesla?
What are the main benefits and drawbacks of Tesla’s sales approach?
Summary
Tesla operates fundamentally differently from traditional automotive manufacturers in the United States by selling directly to consumers through company-owned stores rather than franchised dealerships. This direct-to-consumer model has revolutionized the car-buying experience while creating significant legal and operational challenges across various states.
Tesla's Direct Sales Model: No Traditional Dealerships
Tesla does not have traditional dealerships. As of March 2025, the company operates 276 Tesla locations across 43 states and territories, with California leading the way with 68 locations, followed by Texas with 28, and Florida with 26. These are company-owned stores, galleries, and service centers that facilitate Tesla's direct-to-consumer sales approach.
The company's retail strategy centers on selling vehicles primarily through its website, with showrooms serving as educational spaces where customers can view vehicles, learn about Tesla technology, and schedule test drives. Tesla employees at these locations are product specialists, focusing on education rather than traditional commission-based sales.
How Tesla's Model Differs from Traditional Dealerships
Tesla's approach represents a significant departure from the century-old automotive franchise system:
Sales Process: Unlike traditional dealerships, where customers negotiate with salespeople, Tesla employs a fixed-price, no-haggle model. All purchases must be completed online, regardless of whether customers visit a physical location. In many states, store staff are unable to complete sales transactions on-site due to legal restrictions.
Customer Experience: Tesla stores are designed with minimalist aesthetics, similar to those of Apple stores, and are typically located in shopping malls and high-traffic areas, rather than traditional car lots. The company focuses on providing information and education rather than high-pressure sales tactics.
Inventory Management: Tesla primarily operates on a made-to-order basis, with customers customizing their vehicles online and waiting for delivery, which typically takes 1-6 months, depending on the model. It contrasts with traditional dealerships that maintain extensive inventories on-site.
Legal Challenges and State Restrictions
Tesla's direct sales model faces significant legal obstacles due to franchise laws designed to protect dealerships. Currently, 48 states have laws that ban or limit direct-to-consumer sales by manufacturers, creating a complex patchwork of regulations that Tesla must navigate.
States with Complete Direct Sales Bans
Tesla faces complete bans in approximately 14 states, including Alabama, Arkansas, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, North Dakota, South Dakota, West Virginia, and Wyoming. In these states, Tesla cannot sell vehicles directly and must rely on online sales processed as out-of-state transactions.
States with Limited Operations
Several states allow Tesla to operate, but with significant restrictions:
Texas: Tesla can only operate galleries where employees cannot discuss pricing, offer test drives, or complete sales transactions
Illinois: Limited to 13 stores
Maryland: Limited to 4 stores
Virginia: Limited to 5 stores
New York: Limited to 5 stores
North Carolina: Limited to 6 stores
Pennsylvania: Limited to 5 stores
Recent Legal Developments
Louisiana: In August 2024, the 5th U.S. Circuit Court of Appeals revived Tesla's constitutional challenge against Louisiana's direct sales ban, allowing the company to proceed with its due process claim.
New York: In 2025, Democratic legislators introduced bills to revoke Tesla's direct sales permits, citing concerns about CEO Elon Musk's political activities and role in the Department of Government Efficiency.
Michigan: Tesla successfully settled with Michigan in 2020, allowing it to conduct direct sales and service operations after years of litigation.
The Buying Process: Online vs. Physical Locations
Tesla's purchasing process is designed to be streamlined and digital-first:
Online Ordering: Customers configure their vehicles using Tesla's Design Studio, customize features, and complete purchases entirely online. The process typically takes only a few minutes, with customers paying a non-refundable order fee.
Showroom Experience: Physical locations serve primarily as educational spaces and demonstration centers. Staff can assist with online ordering, but cannot complete sales transactions in most states. Test drives are available by appointment, though walk-in availability is limited.
Delivery: Tesla delivers vehicles to customers at designated delivery centers or, in some cases, directly to their homes. Tesla provides detailed delivery day instructions, including payment confirmation and document signing.
Advantages and Disadvantages of Tesla's Model
Advantages
For Consumers:
Fixed pricing eliminates negotiation and haggling
Transparent process with no hidden fees or markups
Consistent experience across all locations
Digital convenience with online customization and ordering
For Tesla:
Higher margins by eliminating dealer markups
Direct customer feedback for product development
Brand control over messaging and customer experience
Disadvantages
Limited accessibility: Many states restrict or ban direct sales, limiting Tesla's market reach
Service challenges: Tesla maintains approximately 160 service centers compared to competitors' 3,000+ dealerships, potentially requiring more extended travel for service
Reduced test drive availability: Some states prohibit test drives at Tesla locations due to franchise laws
Political risks: Tesla's model faces ongoing legislative challenges and potential rollbacks, as seen in New York
Consumer Preferences and Market Impact
Despite Tesla's innovation, consumer research indicates that 57% of respondents prefer the traditional dealership approach to car buying, while only 20% prefer Tesla's direct retail model. The study found that 94% of respondents younger than 35 are satisfied with dealerships, suggesting that Tesla's model may not become the dominant preference among this age group.
However, Tesla's approach has influenced the broader automotive industry, with other manufacturers exploring direct sales components and improving their digital capabilities. The company's success has demonstrated that alternative sales models can be viable, even in the face of regulatory challenges.
Tesla's direct-to-consumer model represents a fundamental shift from traditional automotive sales, offering benefits such as transparent pricing and streamlined purchasing, while facing significant legal and operational challenges across the United States. While the company has successfully established 276 locations across 43 states, restrictive franchise laws continue to limit its expansion and force complex workarounds in many markets.
The ongoing legal battles and varying state regulations create an uncertain landscape for Tesla's sales model, though the company has demonstrated resilience in adapting to different regulatory environments. As the electric vehicle market continues to evolve, Tesla's direct sales approach may influence broader changes in how cars are sold, even as traditional dealerships maintain strong consumer preference and regulatory protection.
Does Tesla Sell Through Dealerships?
Tesla does not operate traditional franchised dealerships. Instead, it owns and runs its stores, galleries, and service centers. As of March 2025, there are 276 Tesla locations across 43 states. These locations include showrooms for viewing vehicles and service centers for maintenance and repairs.
This approach gives Tesla more control over how vehicles are sold and how prices are set. It removes the franchise dealer from the process entirely. Every purchase is made directly through Tesla, either online or at one of its locations.
How Tesla Sells Differently From Dealerships
Tesla does not follow the typical dealership process you may be used to. Here is what sets it apart:
Set prices: No negotiation. The listed price is final.
Online ordering: Even if you visit a store, all purchases are completed on Tesla’s website.
Educational showrooms: Stores are designed to explain the vehicles and technology. Staff focus on questions, not sales pitches.
Custom-built cars: You choose your options online, and Tesla builds your vehicle for delivery.
This approach provides buyers with clear information and avoids high-pressure sales tactics.
Where To See And Test Drive A Tesla
Tesla stores and galleries are designed to provide an in-person learning experience about the cars. You can view vehicles, sit inside them, and discuss features and available options with our staff. In states with fewer restrictions, stores may also have staff available to guide you through the online ordering process on-site.
Test drives are offered by appointment at most locations. Some states limit what Tesla employees are allowed to discuss or do during their visit because of franchise laws. For example, in Texas galleries, staff cannot talk about pricing, complete an order for you, or even offer a test drive on the spot.
To schedule a test drive, visit Tesla’s website and select your nearest location. You’ll choose a time, provide your license and insurance information, and pick the model you’d like to drive. Walk-ins are possible at some stores, but availability is limited, and you may need to wait or return on another day if the cars are already booked.
In states that ban test drives altogether, some customers travel to a neighboring state to test-drive before placing an order online. Checking the specific rules for your state ahead of time can save you a trip and help you decide whether to make an appointment in another area.
State Laws That Limit Tesla Sales
Tesla’s direct sales model differs from the traditional dealership structure. Many states have franchise laws designed decades ago to protect independent dealers from being undercut by manufacturers. These laws now make it harder for Tesla to sell directly to buyers.
In some states, such as Alabama, Louisiana, and West Virginia, Tesla is prohibited from selling vehicles directly. Buyers in these states can still place an order online, but the transaction is processed through another state where direct sales are allowed. Delivery may also happen at a service center or delivery hub in a neighboring state.
Other states allow Tesla to operate, but with limitations on the number of stores it can open or the tasks its employees are permitted to perform. Examples include:
Texas allows only galleries. Staff cannot discuss pricing, finalize a purchase, or offer immediate test drives.
Illinois limits Tesla to 13 stores statewide.
Maryland allows only four stores, all of which are located near larger cities.
New York, Virginia, North Carolina, and Pennsylvania each cap Tesla at between 5 and 6 locations.
These restrictions create an uneven experience depending on where you live. In some areas, buyers have full access to stores, test drives, and service. In others, they may need to cross state lines to test drive or pick up their vehicle.
Tesla has challenged these laws in court. It won a settlement in Michigan, allowing direct sales there. Cases in Louisiana and New York are still being processed through the courts, with outcomes that could impact access in those states.
If you’re planning to buy, check the current rules in your state to avoid surprises and know what to expect.
Pros And Cons Of Tesla’s Direct Sales Model
Tesla’s direct-to-consumer approach has benefits for some buyers, but it also comes with tradeoffs.
Advantages:
Fixed pricing without negotiations
Online customization and ordering
Consistent experience across locations
Disadvantages:
Fewer service centers compared to traditional dealers
Limited test drives in some states
Many buyers still prefer the conventional in-person dealership process
Understanding both sides can help you determine if Tesla’s model is suitable for you.
If you’re considering a Tesla for its safety features, you can also discover the safest cars based on your needs to help you make the best choice.
Why Tesla’s Sales Model Matters
Tesla’s approach to selling cars has influenced how other automakers think about their sales strategies. Some brands are now testing direct-to-consumer options or improving their online tools.
Younger buyers tend to be more open to online shopping first. But research shows most people still prefer the traditional dealership process.
Even if Tesla’s model doesn’t replace dealerships entirely, it has already changed expectations about how buying a car can work.
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How To Buy A Tesla The Right Way
Now that you know Tesla does not sell through traditional dealerships, you can plan your purchase more easily. Start by visiting Tesla’s official website to explore models, compare features, and customize your vehicle. The site will guide you through selecting colors, wheels, interior, and optional upgrades.
You can also make an appointment at your nearest Tesla showroom or gallery to see the vehicles in person and ask questions. If permitted by your state, you can schedule a test drive during your visit. Even in restricted states, staff can still help explain vehicle features and how to order online.
Before heading to a store, check your state’s rules so you know what to expect at that location. In some states, staff may not discuss pricing or complete a purchase on-site for you. All orders, whether placed in person or online, are processed through Tesla’s website.
Taking these steps will save you time and help you feel prepared as you shop. Once your order is placed, Tesla will update you when your vehicle is built and ready for delivery.
Final Thoughts
Tesla has revolutionized the car shopping experience by selling directly to consumers, bypassing traditional dealerships. Its model gives you more control over your choices and removes the pressure of negotiating. Still, it also comes with challenges, such as limited service locations and restrictions in some states.
Before making a decision, check the local rules, visit a showroom, and schedule a test drive if permitted by your state. Understanding how Tesla sells its cars will help you avoid unnecessary trips and make a more informed decision.
If you’re ready to explore models and start customizing your own Tesla, visit their official website or contact your nearest showroom today.
If you’d like more details about shipping an electric or hybrid vehicle safely, read our guide on hybrid and EV shipping: what you need to know.
Need Help Shipping Your Car?
If you’re planning to buy a Tesla and need assistance with delivery and transportation, we can help. At AmeriFreight Car Shipping, we specialize in coordinating vehicle transport through vetted carriers experienced in handling EVs with care and attention in mind.
Whether you’re moving across the country or picking up your car from a nearby state due to sales restrictions, our agents can guide you through the process and answer your questions.
Frequently Asked Questions (FAQs)
Can you negotiate the price for Tesla?
No. Tesla uses a fixed pricing model. The price you see online or in the showroom is the final price. Tesla does not allow negotiation, and staff cannot offer discounts.
What is the wait time for a Tesla?
Wait times vary depending on the model and options you choose. In most cases, delivery takes between one and six months. Some models or customizations may take longer to process; therefore, it’s best to check the current estimates when placing your order.
How long does a Tesla battery last?
Tesla batteries are designed to last many years. Most batteries can go between 300,000 and 500,000 miles over their lifetime, depending on driving habits, climate, and maintenance. Tesla also provides an eight-year battery warranty on most models.
Are Teslas expensive to maintain?
Maintenance costs for Tesla vehicles are typically lower than those for gas-powered cars. They have fewer moving parts and no oil changes. However, out-of-warranty repairs, tire replacement, and battery service can still be significant, so it’s essential to budget for these expenses over time.
Disclaimer: This post is for general information only. Always confirm details with Tesla or your local state motor vehicle department before making a purchase or scheduling delivery.
