In an interesting move that has taken many by surprise, Tesla announced on Thursday that it will be shifting its sales online, a dramatic shift in the sales policy that will result in the closure of shops and a considerable reduction in the headcount, according to a report by TechCrunch. As per the report, the company is looking for ways to reduce costs and in order to bring cheaper Model 3 to the market.
As of now, Tesla CEO, Elon Musk has not come out with the details of the planned closure but he reiterated the fact that the closure will take and some of the stores will be turned into showrooms and information centers.
“We will be closing some stores and that will be some reduction in headcount as a result; there’s no question about that,” Musk said.
“There’s no other way for us to achieve the savings required to provide this car and be financially sustainable. I wish there was another way, but unfortunately, it will entail reduction in workforce on the retail side, no way around it,” he added.
The move has already started showing its impact and the shift to online sales and other cost cutting measures have allowed Tesla to bring down the cost of Model 3 to $35000.
Speaking to reporters on Thursday, Musk said that the company is looking to hire more technicians and mechanics but it didn’t divulge the details of the move.
The company is coming up with an innovative offer to mitigate the need for a test ride by offering the return policy on its new vehicles. The customers can now own the car for a week, drive it for nearly 1000 miles and still return the vehicle if they are not satisfied with it.
“That’s why we’re going to essentially allow somebody to use the car for free for a week, and return it for a full refund. And we’re going to make it super easy to get a refund, like one-click refund,” Musk noted.
On Thursday, Tesla announced the launch of a $35,000 version of the Model 3, which will have a range of 220 miles with a top speed of 130 miles.