Tesla taken to task by some US sales staff

Tesla sells cars directly to consumers rather than through a third-party dealer, but some of the US sales people concerned took the company to court.

Some allege they’re being overworked, underpaid, and mistreated, according to court records, interviews, and documents obtained by Jalopnik.

Tesla recently agreed to settle a federal class-action lawsuit brought by three current and former owner advisors—the job title ascribed to a segment of sales people—for US$1 million.

The lawsuit accused Tesla of failing to pay sales staff a minimum wage, overtime, as well as provide proper meal and rest breaks under California law. Under the settlement terms, Tesla denied any wrongdoing, and each of the 253 members in the class-action will receive an average of US$2,200, Jalopnik reports.

Attorneys for the plaintiffs in the case didn’t respond to repeated requests for comment, it says.

Through legal battles over the direct-sales method, Tesla has made the case that its preferred way of selling cars makes for a better all-around experience.

A Tesla spokesperson defends its model.

“There’s a reason most people think buying a car at a traditional auto dealership is worse than getting a root canal: The focus is on selling cars at all costs rather than actually doing what is right for the customer,” the spokesperson says. “Tesla has a fundamentally different approach, and customers actually enjoy the experience. In part, this is because we train our owner advisors to spend as much time as necessary to educate our customers about our technology and we never pressure anyone to buy.”

Tesla says the direct-sales method also benefits employees.

“Independent dealers typically rely on fast, high-volume sales at the highest negotiable price, and frequently pressure customers to purchase add-ons and services that they do not want or need,” Tesla argued in a 2017 lawsuit. Its system “eliminates the haggling and hidden fees that have contributed to consumer mistrust of automobile dealers”.

Tesla’s sales employees are compensated in a way that “encourages a low-pressure retail experience,” the company says in the suit.