Tesla Continues To Cut Off Personnel While Moving To Online Stores

Tesla Continues To Cut Off Personnel While Moving To Online Stores

Elon Musk announced last week that all Tesla sales will be moved online, thus laying off personnel of retail stores

Tesla announced last week that is closing many of its 378 retail stores and will move to an online-only sales model. This means more layoffs for the company’s employees, after already firing 7% of its workforce in January from a desire to cut costs.

Moreover, the company is also doing away with the traditional prepurchase test drive, however they will keep some of the retail stores as “galleries” and “showrooms” only:

“Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected. Over the next few months, we will be winding down many of our stores, with a smaller number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centers. The important thing for customers in the United States to understand is that, with online sales, anyone in any state can quickly and easily buy a Tesla.”

Elon Musk stated layoffs are meant to make up for the smaller price tag of the $35,000 Model 3, but promises to hire more mechanics. Moreover, to make the online-only sales model more approachable they will offer a testing period:

“Customers can now buy a Tesla in North America via their 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. With the highest consumer satisfaction score of any car on the road, we are confident you will want to keep your Model 3.”

Source: businessinsider.com