Shortly after Tesla revealed that it will close down most of its retail outlets to focus on online sales, it’s emerged that the electric automaker has also axed bonuses for staff at its retail locations.
Electrek reports that Tesla has started removing all commissions retail employees earn from sales. According to some employees, these bonuses represent the majority of their overall compensation and has allowed some sales staff to earn six figures annually.
Many of Tesla’s retail staff speculate that the manufacturer has cut bonuses to try and push them out before Tesla needs to layoff staff and pay severance.
Carscoops has contacted Tesla to ask about the removal of bonuses for staff and are awaiting a response. The company declined to comment after Electrek issued a similar request.
Late last week Tesla made the controversial decision to close many of its stores as it looks to sell vehicles exclusively online. The company claims that by doing this, it will be able to reduce prices for its vehicles by an average of 6 per cent and allow it to produce the entry-level, $35,000 Model 3 sedan earlier than anticipated.
There are currently 120 Tesla stores across the United States, many of which are in malls and shopping centers.
According to Elon Musk, 78 per cent of Model 3 orders the company received last year were placed online. In addition, 82 per cent of Model 3 customers purchased the vehicle without test driving first. Musk hasn’t stated how many Model S and Model X sales are made online and how many are made in the company’s stores.
In a statement issued to Tesla’s retail staff, he did explain the reasons and expressed his gratitude for all their work.
“This is a hard decision, but it [is] necessary to make our cars more affordable. Our sales team has fought on the front lines of advancing our mission and has been our connection to hundreds of thousands of customers along the way. I want to express my sincere gratitude for all that you’ve done,” Musk said.
