To manage a growing used car business, Tesla is relying on outside firms, including Manheim and Adesa, according to two people familiar with the situation. These businesses help move and manage used cars, putting them through inspections, reconditioning and sales to wholesale customers.
As it has ramped up vehicle production and sales, Tesla has been grappling with what CEO Elon Musk called "delivery logistics hell." A burgeoning volume of used cars poses yet another operational challenge to Tesla, while also giving the company new revenue streams and a way to bring electric vehicles to the masses.
This move is something of a departure for Tesla, which operates as a "vertically integrated" business that sells its new cars direct-to-consumer, provides repairs to via its own service centers, and manufactures parts of its cars that most auto-makers don't attempt to, including its own batteries, car seats, and chips that power Tesla Autopilot features.