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Tesla will close some of its branches instead of moving to an online sales model only. The news comes as the company launches the long awaited 3 Tesla model, worth $ 35,000, and continues to focus on reducing costs and reducing costs for the company. All of its fleet of fully electric vehicles. "We are putting all sales online … Worldwide, the only way to buy a Tesla will be online," CEO Elon Musk said at a press call Thursday afterwards. midday.
Some Tesla Galleries will remain open for customers to see and experience their 100% electric vehicles before they buy, but online shopping combined with a reorganized deposit, return and refund process will be the main platform for Tesla sales.
The sole purpose of the online sales model seems to be to reduce costs and to allow the $ 35,000 Tesla Model 3 standard-size vehicle to exist at this price. When asked if the closing of retail stores would result in layoffs, Musk was honest with this reality.
"We will close some stores and the workforce will decrease … Unfortunately, there is no way out," he said. "We are sort of in a binary choice. Downsize and sell the car for $ 35,000 and reduce the number of people, or do not provide a $ 35,000 car. The CEO also mentioned a 5-6% reduction in the costs of transitioning to online sales only and the savings would translate into lower costs. the price of X and S model vehicles
Tesla's solution to the franchise problem now apparently consists of completely avoiding face-to-face sales. Whether this approach is described as defying the convention or totally ignoring the convention may be a question of perspective, but the result is the same. Where Tesla had already eliminated the traditional intermediary reseller in his sales transactions, he has now even eliminated the traditional rep and pitch.
"I am sure that the dealers will try to oppose us in one way or another, but that would be a fundamental obstacle to trade between States and would constitute a violation of the Constitution. So, good luck with that, "commented Musk on the legal issue during the question and answer portion of Thursday's call.
Tesla's goal is to make the purchase process as easy as possible with a simplified version of its online vehicle configurator. Musk explained,
"You can buy your car on your phone in about 1 minute in the United States, and we'll make it just as easy to [make] a one – minute purchase in other countries too, "
The ability to purchase a Tesla via the company's website was already available before the announcement and the full switch to an online shopping experience only will have a negligible impact on consumers. "We are in 2019. People just want to buy things online."
To compensate for the loss of the test component associated with physical outlets, Tesla has extended its return policy to 7 days and up to 1,000 km after a $ 1,000 deposit, during which time a customer can get a refund integral.
The announcement of the closing of the retail trade was linked to the main announcement of the Tesla Day, anticipating its construction following a series of tweets hinting at big news two days ago: the Model 3 of $ 35,000 from Tesla has finally arrived, offering a range of 220 km and new interior options. The car's time between 0 and 60 mph is 5.6 seconds with a top speed of 130 mph. According to Tesla's online configurator, the cheapest variant would have a final cost of about $ 25,000 after deducting tax credits and fuel savings. Deliveries can be expected within 2-4 weeks from the date of purchase.
After having taken this long step in the "affordable electric vehicles" sector, the future of Tesla will certainly become exciting with the new possibilities it will offer.
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