Tesla is looking to bring down its operating costs by closing down all of its retail outlets and moving towards an online-exclusive business approach. Although this will result in some layoffs, the company is trying to streamline its approach and become profitable again. This will also help Tesla to bring down the costs of its Model 3 and make it more affordable for its consumers.
Elon Musk, who is the CEO of Tesla, did not reveal any information about how many stores would be shut down, although he did say that some of the stores would remain but converted to showrooms and information centers. The company is yet to reveal any specific information regarding how many employees of Tesla would lose their jobs due to this latest development.
Elon Musk recently stated that this latest move will reduce the number of employees under Tesla, and he will also close down some retail outlets of the company. The company is forced to cut costs in order to make the Model 3 cheaper and enable some sort of financial stability for Tesla.
Tesla will be able to reduce the price of all of its models by about 6 percent once the online-only sales strategy is enforced. It will also enable the company to hit the $35,000 price point for its Model 3 variant.
During a recent call with reporters, Musk commented that Tesla is planning to hire some technicians/mechanics for its cars, but did not reveal as to how many technicians they will be hiring at the moment.
Due to the closure of some stores, Tesla will extend the return policy for its cars in order to let its consumers’ test drive their cars. Musk also stated that new customers of Tesla will be able to possess a brand new car for a week and drive for up to a thousand miles before returning it to the company for a full refund if they dislike that model.
Tesla plans to make it very convenient for its customer to get the full refund, and they will introduce options such as a ‘one-click refund’ to make the process fast and efficient.
Tesla came out with a statement on Thursday that it will be offering a Model 3 on its platform. The cheapest variant of the Model 3 will cost just $35,000 and have a range of 220 miles under a full-charged battery. This Model 3 will also be able to attain a top speed of 130 miles per hour.
The company will also introduce another version of Model 3, which is dubbed the ‘standard’ version and this model will be able to reach a top speed of 140 miles per hour and have a range of 240 miles under a fully charged battery. This model will have some premium features under its hood and be able to go 0-60 mph at less than 5.5 seconds. The standard version of the Model 3 will be priced at $37,000 before any incentives kick in.