Recap: It’s been an eventful few weeks for Tesla. The company had said it was closing most of its stores and moving to an online-only sales model, but later backtracked and announced it would keep more of its outlets open. Now, CEO Elon Musk has sent an email to employees that tries to clarify the situation.
When Tesla revealed the $35,000 version of its mid-range Model 3 Sedan could finally be ordered, the company also unveiled plans to go online-only and close “many” stores, thereby allowing it sell the cheapest version of the model 3 while remaining financially stable.
Soon after this news, the EV firm said it had decided to shutter about half as many outlets as previously announced, which it would pay for by raising the price of the more expensive Model 3, as well as the Model S and Model X.
Tesla’s actions have left employees uncertain about their future. In an attempt to clear things up and alleviate their concerns, Musk sent a letter to workers that was obtained by Electrek.
The Tesla boss emphasizes that stores with high visitation rates that bring in significant sales will absolutely not be closed down. Those locations with low sales will gradually be shuttered. “This is analogous to seeds on barren ground. There is no reasonable way to justify keeping such stores open,” states the email.
Any stores that fall somewhere between the two will be evaluated over time to see if there is some way to allow them to cover their costs.
Musk added that the same principles would apply to the sales team, with no major contributors let go. “That would make no sense. However, sometimes, in a company with 45,000 people, things happen that make no sense,” he added, somewhat ominously.
The message confirmed that purchasing a Tesla will involve using a phone or computer at a potential buyer’s home or within a store, meaning the process involves no physical paperwork. Stores will also have a small number of vehicles for customers who want to collect their car straight away.
In other Elon Musk news, a report from earlier this month examined the extreme lengths the CEO allegedly took to destroy a whistleblower.