alexa certify

Tesla Shop: Tesla Closing stores to sell Model 3 at $35K

Tesla launches its long-promised Model 3 amounting to $35,000. But it needs to meet its target price. As a result, Tesla is closing all its stores around the globe. Subsequently, it will lay off thousands of retail employees transferring all sales online.

Elon Musk, Tesla’s CEO says that the Model 3 is “excruciatingly difficult” to produce at an affordable price. Model 3 base model will have 220 miles of range and a top speed of 130mph.

“This is an important milestone for Tesla,” says Jessica Caldwell, the executive director of industry analysis at Edmunds. However, Caldwell also suggests it “might be too little too late.” Taking into consideration that during the start of 2019, the federal tax credits on Tesla-EVs are cut from $7,500 to $3,750.

At one hand, Caldwell says, “If this model had come out when the Model 3 first launched and passion for Tesla was at its peak, shoppers might have given more latitude.” On the other hand, she says, “the expectations have been set, and it’s likely going to be a tough sell moving forward.”

Model 3 Standard Range Plus

Elsewhere, Tesla also introduces a new version called the “Model 3 Standard Range Plus.” It will have an additional twenty miles of range plus ten mph more to the top speed. It is to price amounting to $37,000 before incentives.

Great Things are launching

On Thursday, the company’s website stops its online orders for Model X, Model 3, and Model S. The pages automatically redirects to landing page saying, “Great things are launching.”

However, to reach the $35,00 price, the company is closing its stores to move online. Additionally, it also changes its return policy. It now allows the customer to return cars for a full refund within seven days or with 1,000 miles.

On the contrary, the company declines to reveal the total stores to be closed and how many jobs are impacted. Musk says, “small number of stores in high-traffic locations” remains open but as galleries and information centers only.

Upon question by a reporter regarding Tesla’s anticipation turning the profit in the first quarter this year, Musk says it isn’t likely. But he also says Teska might be black by Q2.

The Biggest Challenge

Karl Brauer, Kelley Blue Book, and Autotrader executive publisher says, “Tesla’s biggest challenge going forward will be meeting production volumes and demand while maintaining timely service for a rapidly-expanding customer fleet.” He added, “If Tesla can do this it will have successfully transitioned from a boutique automaker with a niche audience to mainstream brand serving mainstream consumers.”

Back-to-back quarterly profit

The year 2018 had been rough for Tesla upon manufacturing preoccupation and delays on launching the Model 3. Despite that, Tesla shocked the investors upon posting a back-to-back quarterly profit in 2018.

However, it wasn’t all good news as Tesla announces to lay off about 7% of its workers in January. To add up, last week, Consumer Reports pulls recommendation for Tesla Model 3 telling its reliability concerns with the car.

The company then states, “We take feedback from our customers very seriously and quickly implement improvements any time we hear about issues.” And added,  “we are already seeing a significant improvement in our field data.”

  • Support
  • Platform
  • Spread
  • Trading Instrument
User Review
0 (0 votes)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.

You might also like

Leave a Reply

Subscribe to Our Newsletters

Have the best of Finance Brokerage News delivered directly to your mailbox. Subscribe now to receive the latest market news.