Tesla Partners With Nordstrom To Sell Electric Vehicles

Palo Alto-based electric car manufacturer Tesla plans to sell vehicles at Nordstrom. Co-founder and CEO Elon Musk's company will open one of its galleries in Nordstrom at The Grove in Los Angeles, California. The retail multiplex, owned by real-estate tycoon Rick Caruso, will host an exhibit of Tesla's MODEL X SUV.

The vehicle will be on display in a "400 sq. foot outpost" and the new exhibit will "try to entice Nordstrom shoppers with mix-and-match interior car panel displays, as well as on-site test drives with Tesla employees" according to Fast Company. Nordstrom mentioned in a statement, "We're focused on listening to our customers and seeing how they respond to this type of differentiated experience."

Because of Tesla's recent history of discord with car dealerships, Vice President of North American sales Ganesh Srivats stated, "This kind of innovation is just not going to be possible if we don't have a direct sales model. Because we're ultimately going to be restricted by the dealerships from engaging in new playful ways that we're able to do because we own our business."

Elon Musk laid out big plans for the coming years by recently telling investors he plans on selling 500,000 vehicles by 2018. In order to make true on his promises and plans, Musk and company needed an alternative outlet to sell their vehicles and felt that a partnership with Nordstrom would be the best way to do so. Tesla has only 215 storefronts globally, so in order to meet their goals the company will have to make drastic changes to the selling and delivery infrastructure, such as the new partnership with Nordstrom.

Do you think Tesla's decision to partner with Nordstrom will pay off?