Benzinga | Nov 22, 2021 05:57PM EST

Here's Why A Ford Executive Recommended A Tesla Model 3 Over The Mustang Mach E

While Tesla Inc (NASDAQ:TSLA) has more demand than it can meet, with some estimated deliveries extending out until 2023, the company still has a direct sales model that allows customers to have the same price. For example, if prices rise, it affects everyone and vice versa.

At a traditional dealership, dealers will regularly change prices on an individual vehicle based on the demand or lack thereof.

And that's what one customer experienced at their local Ford Motor Company (NYSE:F) when trying to purchase a Mustang Mach E, in a story shared by Teslarati.

When Reddit user OrderlyMayhem saw markups of $5k or more on the Ford Mustang Mach E he wanted, he decided to email Ford and ask for help with this large markup. But when he got a call back, "...he said there was little they could do to prevent dealerships from adding mark-ups to MSRP."

The Ford employee then agreed it would be better for this person to get a Tesla Model 3 to avoid the dealer markup. While the Ford Mach E may have a similar price to the Model Y or Model 3 when priced at MSRP, a dealer markup in the thousands will quickly make the comparison unfair, pushing anyone towards a Tesla.

The poster then said, "I am now going to be a Tesla Model 3 owner."

This just shows one big advantage Tesla's direct sales have over the competitors. While dealers could offer discounts to seal a deal, in a supply shortage situation markups are more common and can push customers to Tesla, which doesn't use a dealer network.

Photo: Courtesy of Tesla