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Tesla's Amazon store is another example of how the automaker is better at using online retail than its competitors, an expert says (TSLA, AMZN)

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Elon Musk

  • Tesla opened a store on Amazon last week that sells branded merchandise like hats and diecast versions of Tesla vehicles.
  • The move was a small gesture, but a smart one that illustrates the difference between Tesla's retail philosophy and those of its competitors, Gene Munster, a managing partner at Loup Ventures, told Business Insider.
  • Opening the online store allows Tesla to benefit from the amount of traffic Amazon receives while making it easier for customers to engage with the automaker.

Tesla opened a store on Amazon last week that sells branded merchandise like hats and diecast versions of Tesla vehicles.

The move was a small gesture, but a smart one that illustrates the difference between Tesla's retail philosophy and those of its competitors, Gene Munster, a managing partner at Loup Ventures, told Business Insider.

Read more: Tesla's biggest non-Musk shareholder just cut its stake in half — but the stock is still soaring

Opening the online store allows Tesla to benefit from the amount of traffic Amazon receives while making it easier for customers to engage with the automaker, he said.

"I'm surprised other car companies haven't done it," Munster said of Tesla's decision to create an Amazon store. 

Tesla has long had an unusual retail strategy. Rather than using a network of independent dealerships, Tesla sells its vehicles directly to customers through company-owned stores and its website.

The automaker has done a better job of allowing customers to buy cars online than other automakers, but that doesn't mean Tesla will begin selling its vehicles on Amazon anytime soon, Munster said.

The following products are available on Tesla's Amazon store as of Monday afternoon:

  • iPhone cases: $35 to $45
  • Hoodies: $70 to $75
  • Snapback hats: $25
  • Die-cast Model S P100D, Model S P85, and Model X: $250
  • Mug: $25

Have a Tesla news tip? Contact this reporter at mmatousek@businessinsider.com.

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