Tesla reverses plans to close its stores worldwide
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Tesla recently announced that it would be scaling back its stores worldwide and shifting to a more online-based sales interface in an effort to try and better manage its finances.
While those accustomed to online purchasing in part embraced the decision, it went down like a lead balloon for those working in Tesla stores — most of whom finding out the news when everyone else did, through the media.
This included the company's Auckland store, which only opened last June. In America meanwhile, it had been stated that 106 stores nationwide were going to face the axe.
But, with a press release issued overnight, Tesla have backtracked on the decision. At least partially.
"Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months," they said.
"When we recently closed 10% of sales locations, we selected stores that didn’t invite the natural foot traffic our stores have always been designed for. These are stores that we would have closed anyway, even if in-store sales made up our entire sales model.
"A few stores in high visibility locations that were closed due to low throughput will be reopened, but with a smaller Tesla crew. In addition, there are another 20% of locations that are under review, and depending on their effectiveness over the next few months, some will be closed and some will remain open."
Tesla also confirmed that keeping more stores than anticipated open meant that an average price hike of 3 per cent was going to be implemented on their line-up worldwide.
"As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about 3% on average worldwide. In other words, we will only close about half as many stores, but the cost savings are therefore only about half," they added.
Interestingly, the decision came just 72 hours after the Wall Street Journal reported that many of Tesla's US-based stores were tied up in various lease deals, which could have meant legal implications down the track.