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Tesla Will Close Most of Its Stores, Only Sell Cars Online
Tesla CEO Elon Musk said in a call with reporters Thursday that the company will only sell its vehicles online. As a result, the electric carmaker will close most of its stores over the "next few months." The Verge reports: Tesla will keep some of its retail locations open, which the company described as "a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centers." The decision to shift away from brick-and-mortar retail is necessary if the company is to remain financially sustainable, Tesla said. The company's finances have stabilized somewhat in recent months, but Tesla still operates on very tight margins. Tesla said in a blog post: "You can now buy a Tesla in North America via your phone in about 1 minute, and that capability will soon be extended worldwide. We are also making it much easier to try out and return a Tesla, so that a test drive prior to purchase isn't needed. You can now return a car within 7 days or 1,000 miles for a full refund. Quite literally, you could buy a Tesla, drive several hundred miles for a weekend road trip with friends and then return it for free."
The company announced the move at the same time it said it will finally begin to sell its long-promised $35,000 Model 3.
The company announced the move at the same time it said it will finally begin to sell its long-promised $35,000 Model 3.
No need to consider a Tesla. If I can't feel how it drives, how the seat feels, feedback from steering, wind and road noise, and everything else which can make or break such a purchase, I'll cross this off my list.
For those that don't mind this, more power, but some of us like to know what we're getting before we put down cash.
This is a mistake. A car is not like most other purchases, and while Teslas aren't cheap, Tesla isn't so far removed from traditional mass-market sales as to be able to take a page from luxury-performance makes like Ferrari and sell cars to buyers that haven't driven the particular model in question yet.
Sure, there are some people that would be willing to buy a car untested, but I don't think that's most buyers, and I don't care how good Tesla's return policy is, it's a huge hassle to buy something incredibly expensive and to then return it, especially when financing is involved. It's not zero-risk.
Do not look into laser with remaining eye.
Musk announces he'll sell the Model 3's at a loss because demand has collapsed and there are over 10,000 of them sitting in inventory. And this "good news" is meant to cover for the disastrous news that they're closing almost all the stores and firing the sales staff. Oh, and Solar City is done now too since those stores were its only hope.
Today's "great" news all but assures bankruptcy in the next 6 months.