Tesla, a company currently plagued with problems, has announced today a bold plan to fix their financial woes, and bring a new, cheaper vehicle to market, by closing every single retail outlet globally, laying off thousands of staff in the process.
While Tesla has been iconic and pioneering in its ability to produce luxury cars of repute that can go from 0-100 before you can say “pedo guy”, all without so much as a drop of petrol, getting anything even remotely affordable mass produced and into the garages of consumers has proved to be its bane.
Through financing dilemmas, his abilities as a CEO brought into question, and firm warnings from the SEC about his rampant tweeting, which in turn effects his company’s stock, which is tres dodgy, the beleaguered Musk has had a tough couple of years. Now, he’s making his boldest decision yet, though, perhaps, his wisest.
Elon Musk made Tesla a household name when the tech giant’s first car released to market, a roadster that could outrun anything else on the road, was powered by nothing but a battery; a world first back in 2008. Now, Teslas are ubiquitous amongst the rich and environmentally-conscious, though they’ve never been able to bring their tech to the mainstream, given how expensive it is to produce.
Elon Musk announced the Tesla 3–a mid-sized city car with a price tag of USD $35,000, back in 2017, and though it is the most popular electric vehicle on American roads, the company has continually struggled to keep up with demand, delivery dates and production. Though this sounds like a good problem for a company in the business of manufacturing to have, its inability to meet production deadlines has thrown profit predictions out of whack, resulting in doubts about Musk’s ability to keep his promises to both consumers and investors alike.
This has hardly been helped by his penchant for announcing these grand plans to the world via Twitter.
By closing a total of 378 stores, Tesla hopes to reduce the market price of its Model S and Model X by 6 per cent, as well as offer the Model 3 for the promised price of USD$35,000 even earlier than expected. A small number of stores may remain as galleries, or information centres, though all retail operations will cease in the next few months.
Tesla is the first car manufacturer to shift all sales to online, though given that pioneering the the tech industry is kind of their thing, this move might just be the boon the company so desperately needs.