'You Never Need to Walk Into a Showroom': Electric Vehicles Are Forcing Car Companies to Rethink Retail

Zac Estrada

Zac Estrada is a reporter covering transportation, technology and policy. A former reporter for The Verge and Jalopnik, his work has also appeared in Automobile Magazine, Autoweek, Pacific Standard, Boston.com and BLAC Detroit. A native of Southern California, he is a graduate of Northeastern University in Boston. You can find him on Twitter at @zacestrada.

Lucid showroom

The days of Southern California's gigantic car dealerships may be numbered.

That's because a statewide push toward electric vehicles, which require less maintenance than gasoline-powered cars and can be sold more easily online, is forcing automakers to rethink the retail experience.

Earlier this month, Volvo Cars said all their vehicles will go electric by 2030 and be sold online. Ford announced a similar move last month, and other large car companies, including General Motors, have also announced plans to sell mostly electric-only vehicles during the next decade. And they have made efforts to move to online sales and virtual showrooms.


"We're a digital-first brand and you can go online and you can shop and configure a car," said J.P. Canton, U.S. spokesman for Polestar, a Volvo-owned brand shifting the retail experience away from traditional dealerships in auto malls.

For years, franchised dealers stocked endless rows of shiny cars with several models and hundreds of configurations. Dealers built community relationships, cities fought for their presence with the taxes they drew in paying for roads. But the high cost of maintaining large staffs and renting real estate has legacy companies looking at more showrooms and typical retail spaces — and even steering customers away from showrooms or service centers altogether.

Part of the reason dealerships made sense in the combustion engine age was they house massive service centers. But electric cars eliminate part of that need. They have fewer parts and don't require regular tuneups. Plus, software can often be updated remotely.

The pandemic has made contactless purchases the norm. A number of electric car companies — including Tesla and Lucid — were already heading in that direction, featuring online ordering and small showrooms.

Now giant carmakers are following suit, bringing an end to an era.

Lucid showroom

Signs of Change

Last year, Governor Gavin Newsom announced California would move to electric vehicles and ban sales of gasoline and diesel-powered ones by 2035. Other states are considering similar moves. Ford and General Motors have pledged to do the same.

Cadillac, one of GM's lines, relies heavily on dealerships to sell its six different models at suburban auto malls with vast lots of new cars. But in Beverly Hills, it's testing out a different way of selling cars more akin to Tesla. Placed on the first floor of a multi-story building at Wilshire and Robertson boulevards, dealership representatives rely extensively on Shop-Click-Drive and Cadillac Live, the brand's digital showroom. The small footprint is meant to be more environmentally friendly.

"We feel very good about the prospect of going all EV not only about clean energy, but bringing into new experience, going all digital and introducing customers to that experience," said Mahmoud Samara, vice president of sales, service and marketing for Cadillac. The brand announced last summer that it will be all-electric by 2030 and will introduce its first model, the Lyriq EV SUV, in the first half of 2022.

Samara, who has worked for GM for 17 years, said the giant Detroit-based automaker is encouraging U.S. dealers to offer car buying through the Shop-Click-Drive system. That program lets Cadillac — as well as Chevrolet, Buick and GMC — shoppers research the vehicle they want and connect with a local dealer that either has the car in stock or can find one like it near the customer.

Cadillac Live distinguishes its approach among the other GM brands. The program was rolled out across the U.S. last March. It allows users to make an appointment with a Cadillac 'ambassador'' for a virtual car tour, where the sales person can answer questions and eventually line customers up with the Shop-Click-Drive program.

The experience became essential to allow dealers to sell what cars it could during the COVID-induced lockdowns. Samara said the program was well-received both by dealers and customers, pointing to higher customer satisfaction scores. Cadillac posted their best fourth-quarter sales in four years and the best dealer profitability on record.

"We had the vision for digital retailing way before COVID, Samara said. "As the pandemic hit, we were prepared with the platforms where physical contact was limited and whereby the adoption rate during the pandemic was extremely high."

Lucid showroom

Electric Startups Have a Leg Up

Polestar, a new electric-only car brand launched in 2017 as an offshoot of Volvo, has only four U.S. showrooms, including one in Santa Monica at a storefront along the Third Street Promenade. Their model may be a hint of what the future will look like for legacy carmakers.

Polestar's Canton said the brand's prospective customers do the majority of research online, including arranging for a vehicle to be dropped off at home for a 24-hour test drive.

Consumers can arrange for an in-person test drive at the Santa Monica showroom or at a "Polestar Space," as the company calls them. And while a representative shows buyers Polestar's features, all of the ordering is done online. There's no car salesperson, per se.

Orders typically take between a few days to six weeks. And because Polestar offers limited colors, upholstery choices and equipment packages, dealers don't need to keep as much stock on hand.

"Effectively, you never need to walk into a dealer or showroom," Canton said, "because everything can be arranged online, down to having the dealer deliver the car to your door."

The idea has already spread to its parent company. Volvo announced earlier this month the new Volvo C40 will be sold as a pure electric car, through limited configurations and online only for a no-haggle price. All future electric-only Volvos will also be sold this way, the company said. Like Polestar, existing Volvo dealers will still be involved in answering customer questions, preparing the cars for home or office delivery, as well as pickup and drop-off for servicing.

Meantime, Polestar announced this month it would open 15 new retail locations by the end of this year, including in Orange County, but also places that aren't exactly EV strongholds, including Detroit, Boston and Minneapolis.

Newark, Calif.-based Lucid Motors is taking a similar approach to Polestar with its yet-to-be-released car, offering it in only four different packages with limited colors.

The Tesla competitor opened up reservations online for its vehicles for between $70,000 to $170,000 in September, while keeping a retail footprint.

The Lucid Motors retail "studio" and service center is operated by the company and has more of a gallery feel than that of a traditional car dealership.

"The showroom is still a place where customers can sit and bring in their kids and get the full experience," Edson said.

The Century City showroom at the Westfield Mall, one of two in Southern California, has light wood paneled walls and recessed lighting. The other studio is in Beverly HIlls, and the company has plans to open locations and service centers in Orange, San Diego and Torrance later 2021.

"The retail format might be driven by EVs, but it's also driven because it's new," said Zak Edson, senior director of retail operations for Lucid Motors.

Edson said the atmosphere creates a "more direct relationship" with consumers. And with fewer service needs, the shift makes sense.

"Early on, it's important the studio locations are in high-traffic areas," he said. "As a brand, we're getting to be known. We want to be somewhere where it's easy to find. We look for areas with our desired expected customer."

In addition to malls and fashion centers, Lucid has repurposed some vacant dealerships. The Torrance location was most recently used by Rusnak Auto Group, and the Beverly Hills spot was an exotic car showroom that worked on brands such as Maserati and McLaren in the past.

Both of those locations will operate as service centers and hold inventory. Still, their footprint will be much smaller than a traditional automaker would require from a new franchise.

Being heavy on online sales and keeping its brick-and-mortar presence small proved helpful in 2020, especially as the COVID-19 pandemic swept the world and forced shutdowns on most in-person retail visits. Some dealers had to scramble to continue business. Neither Lucid or Polestar's spaces did, however.

"We were so well placed for it because online ordering was all in place," Canton said. "When most other [automakers] were trying to pivot to online, we were already there. What we did have is the immediate capability to address things for the customers. We take the deposit, arrange financing or leasing, do most of the paperwork online."

The New Face of Live Shopping: Whatnot’s $5B Journey

🔦 Spotlight

Hello Los Angeles,

This week has been a challenging one for many in our city as we continue to face the aftermath of the recent wildfires. Recovery efforts are in full swing, and as always, the strength and resilience of our community shine through.

If you or someone you know has been impacted, there are resources available to help navigate this difficult time:

  • Pacific Palisades Fire Damage Maps: View here

These tools can provide support, whether you’re looking for financial assistance, housing resources, or updates on affected areas.

While our community focuses on recovery, we’re also reminded of what makes LA unique: its unrelenting drive to build, create, and innovate. A great example this week comes from Whatnot, the live shopping platform co-founded in 2019 by Grant LaFontaine and Logan Head, which has just achieved a major milestone.

Whatnot announced it raised $265 million in Series E funding, valuing the company at an impressive $5 billion.

For those unfamiliar, Whatnot combines shopping and entertainment through live-streamed auctions. Think of it as a vibrant, interactive marketplace where sellers showcase everything from trading cards and collectibles to fashion items, all in real time. Buyers can bid during the stream, creating a sense of excitement and connection that feels more personal than traditional online shopping.

The company’s new funding—co-led by Greycroft, DST Global, and Avra Capital—will drive expansion into markets like Australia and bring improvements to seller tools, from inventory management to advanced analytics. But what stands out most is Whatnot’s focus on its people. CEO Grant LaFontaine announced plans to buy back $72 million in shares for long-term employees, a move that underscores the company’s dedication to sharing its success.

As we move forward, let’s celebrate stories like these that show how innovation thrives in LA—even amid challenges. Whether it’s supporting wildfire recovery, building the next great startup, or simply connecting with others, we each play a role in shaping the spirit of our city.


🤝 Venture Deals

LA Companies

  • Phase Four, a leader in advanced in-space propulsion systems, announced the first close of its Series C funding round, securing nearly 60% of the target raise, led by Artemis Group Capital, to ramp up production of its Valkyrie Hall Effect Thrusters to at least 250 units annually and develop cutting-edge propulsion technologies for defense and national security needs. - learn more
  • Proper, a next-generation supplement brand launched by fitness entrepreneur Amanda Kloots, secured investment from Ben Bennett's Beauty Accelerator, The Center, to redefine the supplement industry with innovative, nutrient-focused wellness solutions tailored for modern lifestyles. - learn more
LA Venture Funds
  • Sound Ventures participated in a $17M funding round for Reshop, a platform simplifying the returns process for consumers and merchants, with plans to use the funds to enhance their technology and expand their services. - learn more
  • LFX Venture Partners participated in a $30M strategic funding round for Shippeo, a Paris-based company specializing in real-time multimodal supply chain transportation visibility; the funds will support Shippeo's global expansion, particularly across North America and the Asia-Pacific region. - learn more
  • Amboy Street Ventures participated in a $15M Series A+ funding round for Granata Bio, a biotechnology company focused on developing advanced gene therapies; the proceeds will be used to accelerate the development of their pipeline and expand their research capabilities. - learn more
  • BAM Ventures participated in a $700,000 seed funding round for MX Locker, an online marketplace for buying and selling motocross gear and parts; the company plans to use the proceeds to enhance its platform and expand its user base. - learn more
  • Crosscut Ventures participated in a $7.15M seed funding round for SoloPulse, an Atlanta-based company developing advanced radar technology; the funds will be used to enhance their product development and expand market reach. - learn more
  • Starburst Ventures participated in Loft Orbital’s $170M Series C funding round, bringing the San Francisco-based satellite infrastructure provider’s total capital raised to $280 million, with the funds aimed at accelerating their "condosat" missions to simplify and expand access to space. - learn more
  • Overture VC participated in a $100M Series B funding round for Harbinger, a Southern California-based electric vehicle company specializing in medium-duty EVs; the funds will be used to accelerate the production of their electric vehicle platforms. - learn more
  • Muse Capital and Time BioVentures participated in an $18M Series A funding round for Conceivable Life Sciences, a New York-based biotech company developing the world's first AI-powered automated IVF lab; the funds will support their ongoing commercial pilot program in Mexico City and preparations for a U.S. launch targeted for early 2026. - learn more
  • B Capital Group participated in a $25M Series B funding round for Labviva, a Boston-based AI-driven procurement platform for life sciences; the funds will be used to accelerate product development, enhance marketing and customer support, and expand internationally. - learn more
  • Focalpoint Partners participated in a seed funding round for Kerna Labs, a San Francisco-based AI biotechnology company focused on advancing mRNA payload design for new therapies, with the funds supporting operational expansion and development efforts. - learn more

LA Exits

  • Intracom Systems, a pioneer in software-based communication solutions, has been acquired by IPC, a global leader in trading communications technology, to enhance IPC's SaaS communications offerings for the financial services industry. - learn more
  • Adexa, a provider of advanced supply chain planning solutions, has been acquired by Eyelit Technologies to enhance its Manufacturing Operations Management (MOM) and Manufacturing Execution Systems (MES) offerings and expand its market presence. - learn more
  • Caramel, a platform specializing in simplifying online vehicle transactions, has been acquired by eBay to enhance its offerings for secure and streamlined automotive buying and selling experiences. - learn more
  • ImaginAb, a biotechnology company specializing in antibody-based imaging and therapeutic solutions, has been acquired by Telix Pharmaceuticals to expand its next-generation therapeutic assets and biologics technology platform. - learn more
  • Sleepypod, a global leader in crash-test-certified safety harnesses and carriers for pets, has been acquired by Paw Prosper to enhance its commitment to pet well-being and expand its portfolio of innovative pet safety solutions. - learn more

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Standing Together Through the Flames

🔦 Spotlight

To our Los Angeles family,

This week’s wildfires have brought immense pain and hardship to our beloved city. Many of our friends, neighbors, and colleagues have faced evacuations, power outages, and the devastating loss of homes and livelihoods. Our hearts go out to everyone affected by this tragedy.

At dot.LA, we want to express our deepest sympathy to those suffering in this moment. We see your resilience and stand with you during this challenging time. This community has always been defined by its strength and compassion, and now is the time to come together in support.

If You or Someone You Know Has Been Impacted, Resources Are Available:

Evacuation Shelters:

  • Calvary Community Church: 5495 Via Rocas, Westlake Village, CA 91362
  • Ritchie Valens Recreation Center: 10736 Laurel Canyon Blvd., Pacoima, CA 91331
  • Pan Pacific Recreational Center: 7600 Beverly Blvd., Los Angeles, CA 90036
  • Westwood Recreation Center: 1350 Sepulveda Blvd., Los Angeles, CA 90025
  • Pasadena Civic Auditorium: 300 East Green Street, Pasadena, CA 91101
  • Pomona Fairplex: 1101 W McKinley Ave, Pomona, CA 91768
  • Stoner Recreation Center: 1835 Stoner Ave, Los Angeles, CA 90025

Animal Shelters:

Small Animals:

  • Agoura Animal Care Center: 29525 Agoura Rd, Agoura Hills, CA 91301
  • Baldwin Park Animal Care Center: 4275 Elton St, Baldwin Park, CA 91706
  • Carson Animal Care Center: 216 W Victoria St, Gardena, CA 90248
  • Downey Animal Care Center: 11258 Garfield Ave, Downey, CA 90242
  • Lancaster Animal Care Center: 5210 W Ave I, Lancaster, CA 93536
  • Palmdale Animal Care Center: 38550 Sierra Hwy, Palmdale, CA 93550

Large Animals:

  • Pomona Fairplex: 1101 W McKinley Ave, Pomona
  • Industry Hills Expo: 16200 Temple Ave, City of Industry, CA 91744
  • Antelope Valley Fair: 2551 W Avenue H, Lancaster, CA 93536
  • Los Angeles Equestrian Center: 480 W Riverside Dr, Burbank, CA 91506
  • Pierce College Equestrian Center: 7100 El Rancho Dr, Woodland Hills, CA 91371

Disaster Relief Information:

  • LA County Assessor: Information for property owners and FAQs about disaster relief.

Mental Health Support:

  • Los Angeles County Department of Mental Health: Crisis counseling and support for those affected. Access services through their website or call their hotline at (800) 854-7771.

Temporary Housing Support:

  • Airbnb: In partnership with 211 LA, offering free temporary housing for displaced residents. Spaces are limited; complete the form to be notified of availability.

Transportation Support:

  • Uber: Use promo code WILDFIRE25 for 2 free rides up to $40 each to/from active shelters.
  • Lyft: Code CAFIRERELIEF25 offers 2 rides up to $25 each for up to 500 riders, valid until 1/15.
  • Metro: Fare collection is suspended systemwide.

Staying Informed:

  • Watch Duty App: Provides real-time wildfire tracking, evacuation warnings, and updates.
  • Los Angeles Fire Department Alerts: Visit their website for the latest information on fire status and safety guidelines.

Safety Precautions:

  • Ready, Set, Go!: Personal Wildfire Action Plan by the Los Angeles County Fire Department.

To those in our community who are volunteering, donating, or offering aid in any form—thank you. Your efforts embody the spirit of LA: strong, compassionate, and unstoppable.

At dot.LA, we’re committed to amplifying stories of resilience and support. If you’ve seen inspiring acts of kindness or have resources to share, please let us know. Together, we can shine a light on the incredible ways this community is stepping up during these trying times.

In the days ahead, let’s hold tight to the bonds that unite us and remember that we are stronger together. The fires may scar the land, but they cannot dim the collective spirit of Los Angeles.

We’re here for you, and we’re with you.

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    A Strong Finish to 2024 for LA Tech: Crosscut Ventures Leads the Way

    🔦 Spotlight

    Happy Friday LA!

    As we close the book on 2024, Los Angeles has had a remarkable year in tech and venture capital. From groundbreaking funding rounds to industry-defining innovations, the city’s tech ecosystem has showcased its ability to adapt and thrive. Among the year’s final highlights was the announcement that Crosscut Ventures, one of LA’s premier early-stage venture capital firms, has added Jon Ylvisaker as its newest Partner.

    Crosscut Ventures’ Bold New Direction

    Announced in late December, Jon Ylvisaker’s appointment reflects Crosscut Ventures’ commitment to advancing its focus on the energy transition. Ylvisaker brings decades of experience in driving investments in energy technologies and digital infrastructure. As the founding partner and managing director of Yield Capital Partners, he led investments in startups and established companies shaping the future of sustainability. At Wolfacre Global Management, a Tiger Management hedge fund, he further honed his expertise in supporting impactful climate-focused solutions.

    Brian Garrett, Managing Director and Co-Founder of Crosscut Ventures, said, “Jon's extensive experience in climate and digital infrastructure investments, coupled with his impressive track record of bringing groundbreaking technologies to market, makes him the ideal partner to help lead our focus.”

    Since its founding in 2008, Crosscut has played a key role in shaping LA’s tech landscape. Ylvisaker’s addition reinforces the firm’s commitment to addressing global challenges like energy transition and sustainability, further solidifying its leadership in venture capital innovation.

    What’s Next for LA Tech in 2025

    The momentum from 2024 has set the stage for an even bigger year ahead. Entrepreneurs, investors, and innovators in LA are poised to take on new challenges and create meaningful change across industries.

    As we step into 2025, we want to thank everyone who helped make 2024 such a standout year. Here’s to another year of progress, innovation, and success. From all of us at dot.LA, Happy New Year!

    🤝 Venture Deals

    LA Companies

    • First Resonance, a company specializing in digital manufacturing software through its ION Factory OS, has raised a $20M funding round led by Third Prime with participation from Blue Bear Capital and others. This brings its total funding to $36M and will be used to accelerate product development, grow its customer base, and enhance support for advanced manufacturing sectors like aerospace, robotics, and clean energy. - learn more
    LA Venture Funds
    • Finality Capital Partners led a $17M Seed funding round for ChainOpera AI, a California-based company developing blockchain networks for AI-powered agents and applications, to accelerate product development, expand its team and enhance its blockchain and AI integration capabilities. - learn more

    LA Exits

    • Thirteen Lune, an inclusive beauty e-commerce platform, has been acquired by SNR Capital, marking a significant milestone in the platform's mission to amplify underrepresented beauty brands while fueling its next stage of growth. - learn more
    • Ergobaby, a leading brand in juvenile products known for its high-quality baby carriers, has been acquired by Highlander Partners. The acquisition aims to bolster Ergobaby’s growth, expand its product offerings, and strengthen its position in the parenting solutions market. - learn more

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