The fifth largest auto dealer in the United States: Tesla poses a huge challenge to the company

Sonic Automotive, the fifth-largest U.S. auto dealer group, reported fourth-quarter 2019 profits on Wednesday that fell short of analysts' expectations, according to Bloomberg. Jeff Dyke, the company's president, said "challenges" faced by BMW and Honda were one of the reasons. Many of Sonic's stores that sell those company brands are located in California, where Tesla is headquartered and the largest market for the Model 3 sedan so far.

When asked by analysts whether Tesla was a factor in BMW's challenges, Dyke responded: "Absolutely."

"I spend a lot of time in manufacturing meetings, and five years ago, Tesla wasn't even a major topic," Dyke said. "Today, it's top of mind for everyone. It has to be."

Tesla has shunned the traditional dealership network in favor of selling directly from stores and through online orders, and while other retailers have criticized Chief Executive Officer Elon Musk’s approach, saying it could slow down deliveries and repairs for the electric car maker, Dyke praised the billionaire.

"You can say whatever you want about their service issues and the overall situation, they're just going to sell more, I don't know if it's a cult or not," Dyke said. "My hat's off to them -- they're selling a lot of cars, and in California, there's no doubt they're replacing us."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.