Pub 5 2023 Issue 2

Consumer Reports rates it seventh on Advanced Driver Assistance Systems. (The best Driver Assistance systems in the U.S. were Ford BlueCruise and GM SuperCruise.) Also, the German Level 3 system made by Mercedes-Benz surpasses Tesla’s Level 2 system. Just how fast is the market for EVs growing? In 2011, manufacturers sold 45,000 vehicles globally. The number was 3.24 million in 2020. Experts think 27 million vehicles will be sold by 2030. Tesla has done well financially. In 2012, annual sales were $400 million. They were $31.5 billion in 2020. However, maintaining that growth may prove impossible as other companies get involved and make the investments necessary to meet their goals. The drop in Tesla prices was good news for prospective owners but bad for existing owners. After all, there’s nothing quite like seeing the value of an expensive vehicle drop 20% in one day. In addition, Tesla vehicles have had construction problems and stale designs, and the federal government has been investigating 16 Tesla crashes that involved Autopilot or Traffic-Aware Cruise Control. Having stores where people can bring their vehicles for service and repair is a big advantage for dealerships. Earthweb estimated 2.5 million Tesla vehicles on the road at the end of 2022. According to Electrek in an online article dated June 2022, Tesla had more than 673 stores and service centers and more than 1,372 mobile service vehicles. Although Elon Musk said about the same time that his goal was to improve service in North America, he hasn’t been able to close that gap adequately yet. The reality for many Tesla owners is that they might not be close to any service center or mobile service vehicle. Even if they are, they might have to wait weeks or months for service from an authorized center. Elon Musk hoped that Tesla vehicles would need so little service that the shortage of repair places would have been no problem, but it hasn’t worked out that way. For example, Tesla windshields crack like windshields in other cars, but nobody has them in stock for next-day repair. Tesla’s inadequate service network creates an opportunity for its competitors. According to Mark Reuss, GM’s President, GM dealers started repairing Teslas in 2021. Other companies are doing the same thing. There’s even a website (fixyourtesla.com) with a national directory of third-party Tesla service shops. The world is moving to electric vehicles, and that will change the automotive landscape, but Tesla doesn’t have a lock on what that future will be in terms of market share. Tesla benefited from U.S. prosperity and a lack of competition. Those days are done. Legacy vehicle manufacturers are finding ways to adopt Tesla’s best ideas without dismantling the dealership model that has been developed and proven over time. 3 Success is no accident It is hard work, perseverance, commitment, never giving up, sacrifice, getting results and the LOVE of what you are doing. For over 24 YEARS we have been LOVING what we do…. WHY WOULD YOU TRUST YOUR BUSINESS TO ANYONE ELSE? 24 years of putting YOUR dealership profits FIRST! www.firstinnovations.com www.firstinsuredgroup.com The First Group Family of Companies Better Products • Better Prices • Better Service 12 UTAH AUTO DEALER

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