In the ever-evolving automotive landscape, recalls are not uncommon, and even industry leaders like Tesla are not exempt. Today, Tesla issued a recall of all 2 million of its cars on US roads to limit the use of its Autopilot feature due to crash concerns.
All impacted Tesla vehicles will get an “over the air” software update to implement multiple features designed to monitor driver engagement and turn off Autopilot if the driver is not considered attentive. This isn’t the first Tesla recall, so some dealers may be well-versed in how to deal with the aftermath.
For car dealerships with Tesla vehicles in their inventory, navigating this situation requires a strategic approach.
Stay Informed
The first step for car dealerships is to stay well-informed about the specifics of the Tesla recall. Understanding the nature of the issue, affected models, and the recommended corrective actions is crucial. Tesla typically provides detailed information, and dealerships should communicate this information transparently to both staff and customers.
Update Inventory Listings with Live Data
Car dealerships should immediately update their online inventory listings to reflect the recall status of affected Tesla models and monitor price changes. Clearly communicating the recall information in online listings helps manage customer expectations and avoids potential misunderstandings during the sales process. Book values will lag in impact, so using live market data to adjust prices will be key. (Take a look at Carketa’s pricing and appraisal tools using live market data with a quick demo here.)
Consider Capitalizing on the Recall
Post-recall, many dealers may panic and try to offload inventory in the wholesale market or take a loss on current stock in order to get their capital out and reinvest it. Depending on the local market and your customer base (as well as your available capital), there may be an opportunity to buy low. Monitor the market both locally and nationally (Carketa gives you national price trends as well as local market comps to make decisions quickly) – retail arbitrage could be a major opportunity for dealers who are well-versed in this strategy.
Educate Sales Staff
Sales staff should be well-versed in the details of the recall to address customer inquiries effectively. Training sessions or informational materials can help sales teams communicate accurate and reassuring information to potential buyers, demonstrating the dealership’s commitment to transparency and customer safety.
