Tesla-Like Software Updates Put Dealers’ Profit Center at Risk
- More carmakers, suppliers plan to begin over-the-air fixes
- Dealers, still needed for physical repairs, aren’t going away
The over-the-air software updates Musk pioneered to add features or fix flaws in his electric vehicles are being embraced by more automakers.
Photographer: Christopher Goodney/BloombergThis article is for subscribers only.
Auto dealers already feuding with Elon Musk for cutting them out of the car-buying process have another reason to dislike Tesla Inc.
The over-the-air software updates Musk pioneered to add features or fix flaws in his electric vehicles are being embraced by more automakers, a potentially grim development for dealers who typically rely on parts and service for as much as half of gross profit.