Tesla Will Close Many Of Its Stores And Switch To Online Sales

Tesla is moving away from its controversial retail model and will close many of its stores across the United States as it looks to sell vehicle exclusively online.

The electric automaker currently operates roughly 120 stores across the United States, many of which are in malls and shopping centers. For years, Tesla has battled with regulators and supporters of traditional franchised dealerships in order to expand its footprint of stores across the country.

In a statement issued alongside confirmation that the long-promised $35,000 Model 3 is now available to order, Tesla said that closing its physical locations will allow it to reduce the costs of its vehicles.

“Over the next few months, we will be winding down many of our stores, with a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centers.

“Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected,” the company said.

As Tesla winds down these stores, it will make purchasing its vehicles online much easier. A new car can be purchased in North America on a mobile device in roughly 1 minute, and soon customers worldwide will be able to order a Tesla just as easily, the firm revealed.

In a bid to encourage buyers to shop online without test driving it at a physical location, the automaker is offering a seven day, 1,000-mile return policy.

“Quite literally, you could buy a Tesla, drive several hundred miles for a weekend road trip with friends and then return it for free. With the highest consumer satisfaction score of any car on the road, we are confident you will want to keep your Model 3,” Tesla said.

  • Mr. EP9

    “For years, Tesla has battled with regulators and supporters of traditional franchised dealerships in order to expand its footprint of stores across the country.”

    Well that explains it.

  • baofe

    “free” should be marked in asterisks

  • Adilos Nave

    Tall order to ask people to part with their money on a product without having touched it or driven it. And what about trade-ins? I’m supposed to order the car (let’s just say for $75K,) and have it show up at my door with some hipster to show me the ins and outs? And it only takes 60 seconds!! I swear, this company needs to realize that some of the things REAL car manufacturers do isn’t dumb and only because they are run by olds. Elon needs to respect his elders.

  • Adilos Nave

    That’s great. Extremely happy for you. But still, what about trade-ins?

    • Jørn-tommy Skjellnes

      in norway tesla has deals with other cardealers for theyr trade in cars, and i heard that tesla dont want to trade in cars with gas or diesel engines.
      In february The Tesla Model 3 was nr 2 of the best selling cars.

    • TheBelltower

      Tesla doesn’t deliver cars or accept trade in vehicles at their stores. A lot of the stores are located in malls, and some don’t even have vehicles on display. Service Centers will still exist to hand over vehicles.

    • Jay

      All snark aside, if you are concerned and savvy with money, you shouldn’t be trading in any cars. It always makes sense to sell yourself and in the US if you want as little as trade in will give you, there’s Carmax.

  • TheBelltower

    Traditional franchise dealers are an anchor to automakers. Just ask Cadillac.

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