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Tesla is closing most of its stores, will only sell vehicles online

By midian182 · 5 replies
Mar 1, 2019
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  1. Alongside news that the $35,000 version of its mid-range Model 3 sedan can finally be ordered, Tesla said it will be shifting to an online sales strategy. CEO Elon Musk explained that this would see “many” stores closed and a “reduction in retail headcount.”

    Only a small number of stores in “high-traffic locations” will remain open as galleries, showcases and Tesla information centers, where customers can learn about the company and buy merchandise. Tesla never specified how many of its employees would be laid off as a result of the closures. “It is a hard decision but I think it’s the right decision for the future,” said Musk.

    Tesla added that the operational savings it would make from the move would allow it sell the cheapest version of the Model 3 while remaining financially stable. Additionally, it will be increasing its investment in its customer service system, with the aim of providing same-day or even same-hour service to Tesla owners. Most of this will involve Tesla coming to the customer, rather than the other way around.

    Back in January, Tesla announced that it was cutting seven percent of its workforce as it looked to retain profitability following a “challenging” year. It appears that this decision could have been preparing the company for the move to online-only sales.

    Permalink to story.

  2. VitalyT

    VitalyT Russ-Puss Posts: 4,478   +3,035

    So now if your Tesla needs qualified attention, you will have to wrap this up and post it back. I already heard things about Tesla service, and it seems like they are taking it to a new level.
    ghostf1re and Underdog like this.
  3. Vulcanproject

    Vulcanproject TS Evangelist Posts: 736   +1,064

    Can be difficult to sell cars you can't show to the passing public.

    It works when you are a small car company selling in small volume. You sell by word of mouth, you sell to enthusiasts who seek out your products. It'll be harder to convince average joe to part with $35k+ for a car they can't get their hands on easily before committing so much money.

    The buying experience is a MASSIVE part of putting down the cash for a new car! It can't be underestimated.
    ghostf1re likes this.
  4. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,237   +897

    The smartest thing Teslas did was going to posh malls and opening "galleries" to sell their cars - and then following up by purchasing spots in the lot for their superchargers and to park their cars.

    In our wealthiest areas: Americana Manhasset, Short Hills Mall, Roosevelt Field Mall... their model has done wonders because purchasing their cars resembles a concierge that is sort of a cross between Apple's business model and Amazon's delivery model.

    The downside is that it's hard as hell to find a well equipped model that isn't sky-high in price.

    Dealer lots keep more options on hand.

    The Model 3 is a cool car which needs to be supplemented by an equally priced crossover - in the same vain that Mercedes built the CLA and GLA. I'm sure a small crossover with AWD and performance option will do VERY WELL under $70,000. followed by a Semi Truck and a F-150 competitor, I think Tesla has what it takes to go long.
  5. Uncle Al

    Uncle Al TS Evangelist Posts: 5,389   +3,777

    Just another clear indication of a failing car company. He would be wise to sell it soon to one of the professionals that already know how to run a company and can gain visual and personal viability by putting on existing commercial car lots. He continues to be a lot better at talking than about decision making, which is a shame but he's certainly not the only high profile figure to be guilty of that ....
    JaredTheDragon and ghostf1re like this.
  6. B5S46M

    B5S46M TS Enthusiast Posts: 23   +35

    Just when Tesla started turning a profit and selling a lot of cars, they pull this crap. Seriously? I was considering a Tesla as a future option, but now, forget it. This company is being run by an unstable madman.

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