Tesla is closing a few of its retail stores and will concentrate only on online sales.
Tesla is moving on to online sales, worldwide. On Thursday, CEO Elon Musk says that Tesla vehicles can be bought online.
A few of Tesla galleries will remain open for customers to see the vehicles they are going to purchase beforehand. Tesla will provide for online purchase with a revamped deposit, refund and return process, etc. on its sale.
Online sales will help to cut costs on its models. This is one way of cutting costs so that customers can buy the Standard range Model 3 at a low price of $35,000.
“As we close some of the brick and mortar stores, there will be a reduction in headcount and reduction in costs”, says Musk. Once the headcount is reduced, we can sell the car at $35,000, else this selling price cannot be met, says the CEO.
Further, online sales will reduce the transition cost by 5 to 6 percent which will also be savings for the company. Even Model X and S vehicles can be sold at lower costs through online sales, feels Musk.
Tesla has never required the traditional middleman dealer for its sales. Now, it will do without the salesperson pitch too.
Elon Musk says that the entire streamlined version will be as frictionless as possible. “The purchase of your car will take just a minute in the U.S. and we will soon make it easy in other countries as well”, says Elon Musk.
The online sale facility has been available on the company’s website even before it was made official. People prefer making online purchases and in 2019, the trend towards online sales will continue in all products, even in cars.
This is a great milestone for Tesla, says Jessica Caldwell, the executive director of the Edmunds industrial analysis.