Tesla Reportedly Wants to Get Rid of Showrooms in Expensive Locations

Electric car manufacturer Tesla is closing its stores in expensive places such as high streets and shopping centres and is opting for more showrooms in cheaper locations.

 

Also, a more significant proportion of sales staff would work remotely instead of in the stores themselves. That reports the usually well-informed website about electric driving Electrek based on insiders.

CEO Elon Musk also decided in 2019 to close stores in expensive places. At the time, this was not offset by the fact that shops were added in other places. Instead, sales would mainly take place via the internet.

Many employees lost their jobs as a result. Musk reversed the decision a few weeks later because the decision was allegedly made based on unrepresentative data about internet sales. Tesla had to cut back at that time because of the European launch of its Model 3.

The strategy adjustment for stores seems to be coming two years later. According to Electrek, the number of sales locations is increasing, but the so-called delivery centres are located in places where the rent is lower. Therefore, the number of store employees would not decrease this time.

However, employees are less likely to work from the stores themselves. People who now indicate online that they want to buy Tesla or take a test drive will be assigned a sales representative from a store in the area. In the new situation, that would change to employees who help customers remotely and can ensure that they can take a test drive at a specific location and unlock the car.