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DIGITAL FEED

Tesla Shifts To E-Commerce

3/1/2019

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Source: The Verge / Alex Castro
Tesla announced that it will shift away from physical stores to only having e-commerce, stating that clients will be able to buy a Tesla in North America on their mobile phones in close to 1 minute. Tesla stated that the decision to move away from physical retail locations was driven by the company's need to remain financially sustainable as the move to e-commerce will help Tesla cut operating expenses. Most of the Tesla's current stores will close and those that stay open will become Tesla information centers, galleries, or showcases. The company announced the move to e-commerce at the same time as it finally begins to make available its long awaited "Standard Range" Model 3.

Tesla also announced that in order to serve the needs of its growing customer base, they will be increasing the number of service centers by a significant amount with the goal of providing same day service to all Tesla owners. Current Tesla owners can currently order a mobile service truck through their Tesla mobile app. 

Tesla announced a company-wide restructuring in June of 2018. Although the company has had two back-to-back profitable quarters, Elon Musk, Tesla CEO, reported that he isn't expecting Tesla to earn a profit in Q1 of 2019 in a call with reporters. 

Customers who buy a Tesla online will be able try out their vehicle for 1,000 miles or 7 days and still be able to return the car for a full refund. 

Click here to read the full article. 
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