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It also sells a higher-performance long-range version called Standard Range Plus. This provides greater autonomy and faster speed, and it costs $ 2,000 more before incentives.
2. Closure of stores: Musk said Tesla was closing most of its stores and firing retail workers to make it financially feasible to produce the cheaper model.
This means that all Tesla purchases will be made online. Musk said that a "small number of stores located in" busy places "would remain open, as well as galleries and information centers where guests can see the cars in person and ask questions.
3. New return policy: Due to its new purchasing policy, Tesla said that it will facilitate the return of cars for customers. Buyers will have seven days or 1,000 km during which they can return the car for a refund. Although returns are the norm for most products, they are almost unknown for new cars that lose significant value as soon as they are driven by an owner.
4. Service ImprovementsAt the same time, Tesla is trying to improve what has been the most criticized part of its Tesla ownership experiment: getting cars repaired. The company aims for a "service the same day, even the same service". Tesla said that in most cases, the company would send the customer to service the car, instead of bringing it to a Tesla service center.
5. Profit warning: Musk said Tesla would probably not make a profit for the first quarter of 2019 – but Tesla could be in the dark by the second quarter.
Peter Valdes-Dapena of CNN Business contributed to this report.
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