AfterDawn: News

Tesla moving more towards online sales

Electric car company Tesla has decided to renew their sales strategy slightly. To help with the bottom line, the company is closing some of its brick and mortar stores and focusing on online sales.

The web store is going to be the primary point of sale internationally, and part of the change in strategy is simply closing Tesla dealerships for good.



According to the company, the renewal of strategy is going to not only save the company plenty of money but will also be transferring to lowered vehicle costs for the consumer. An average of six percent price decrease is expected to the current lineup of Tesla models.

This of course includes the newest and most affordable car they build, Model 3, which will be available for $35,000.

Tesla isn't going to get rid of every brick and mortar location, some of them are to be converted into showrooms.

There's no word on how much of the sales staff will be laid off, or the exact number of closing locations.


Written by: Matti Robinson @ 2 Mar 2019 12:26

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• 1 comment

• SoTired

  This is a great move.
  
  Dealers add very little value to the consumer in car buying. But they do make the sales process miserable by forcing a customer to spend hours haggling over a price, which only serves to squeeze more money out of most consumers' pockets while providing nothing positive. The only reason dealers have survived this long is that dealerships have a very strong lobby that has persuaded (or bribed or whatever verb you think best fits) state legislatures across the country to prohibit manufacturers from opening their own sales facilities.
  
  Taking the middle man out of the equation will mean Tesla can sell its cars cheaper and be more competitive than other manufacturers that continue to use the dealership model that has long outlived its usefulness. Other manufacturers will eventually have to follow suit if they want to remain competitive.
  
  The day can't come soon enough.

  6.3.2019 15:23 #1