Tesla Closing Most Stores/Galleries in Favor of Online Orders

eXntrc

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#6
Oh noooooo!!!! :(:(:(
Damn... my heart sunk so badly for this. So many good employees I’ve worked with and become friends with that I...well, I’m not sure how this will impact them but I’m fearing the worst! :(
Yeah this is incredibly sad news. :( I was actually texting the person I test drove with while the news was breaking. I don't think she had any clue about the stores getting closed nor do I think any of them know which ones will be affected yet.
 

voip-ninja

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#8
Oh noooooo!!!! :(:(:(
Damn... my heart sunk so badly for this. So many good employees I’ve worked with and become friends with that I...well, I’m not sure how this will impact them but I’m fearing the worst! :(
I wonder if some of them are going to be re-assigned as delivery specialists at service centers. If not does that mean the same person who is booking your service appointment is going to do a new car delivery?

It doesn't bode well for Tesla if they take an already wishy-washy delivery experience and make it worse. I still have rattles and other minor issues with my car I have not yet had them address because every interaction I've had with service has been pretty miserable.
 

voip-ninja

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#9
Yeah other than a few token stores in high traffic areas all of the stores globally are being closed and all orders will be online. The brick and mortar stores will have brand ambassadors so I expect that they will answer questions and customers will still have to order online and possibly no more test drives.

It's possible that the delivery process is changing as well and could go home/office delivery only with no delivery specialist to go over the car with the new customer.
 

DanSz

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#10
No stores doesn’t mean no service centers.

But are all cars delivered?

So many questions!!
 
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#14
I'm a little concerned about moving to a completely online sales model. It's fine to say you can return your car if you're not happy but it's a major commitment to arrange for financing, insurance and a possible trade in if you have no idea whether or not you will like the car. It seems this will put Tesla at a disadvantage in going after customers who may be on the fence about an EV. As competition materializes, these potential customers will be able to stop by their local BMW/Volvo/? Dealers and test drive their offerings. While Tesla specs and price may be better some customers may decide it's safer to go with a car they can drive before they buy.
 

scottf200

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#15
Not all. See underlined text.

https://www.cnbc.com/2019/02/28/elon-musk-memo-about-cheaper-model-3-store-closures.html
As a result, over the next few months, we will be winding down many of our stores and significantly reducing our spend on sales and marketing, which will help make the price changes we've announced today possible. Shifting all sales online combined with other ongoing cost efficiency will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point.

A small number of stores in high-traffic locations will remain as galleries, showcases and Tesla information centers. At the same time, we will be increasing our investment in the Tesla service system and manufacturing, and I expect that headcount to grow next year.

Unfortunately, this means that some jobs will be impacted or transitioned to other areas of the business. This is a hard decision, but it necessary to make our cars more affordable. Our sales team has fought on the front lines of advancing our mission and has been our connection to hundreds of thousands of customers along the way. I want to express my sincere gratitude for all that you've done.
 

scottf200

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#16
I'm a little concerned about moving to a completely online sales model. It's fine to say you can return your car if you're not happy but it's a major commitment to arrange for financing, insurance and a possible trade in if you have no idea whether or not you will like the car. It seems this will put Tesla at a disadvantage in going after customers who may be on the fence about an EV. As competition materializes, these potential customers will be able to stop by their local BMW/Volvo/? Dealers and test drive their offerings. While Tesla specs and price may be better some customers may decide it's safer to go with a car they can drive before they buy.
78% last year.

https://www.cnbc.com/2019/02/28/elon-musk-memo-about-cheaper-model-3-store-closures.html
Last year, 78% of all Model 3 orders were placed online, rather than in a store, and 82% of customers bought their Model 3 without ever having taken a test drive.
 

Artdept

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#17
All cars will be delivered. Even if you live next door to the Fremont hub.
They learned alot about the delivery experiences with the model 3 at the service centers and showrooms. People are less likely to be nit picky about small gap here or a slight discoloration there if the car is in their driveway. Their Money is better spent Outside of malls and more focused on the real mission (staying alive)

In exchange.. by giving you a industry unheard of (at least in california) 7 day return policy on a new car. They are rating the bar fir all car companies.
The week will start to die off.
I’m pretty sure They feel pretty confident you will fall in love and keep the thing. Any person or company that is willing to put out a offer like that for such a high ticket item get my thumbs up. You just won me back tesla. Now let’s hope tho latest stunt gives you the cash you need to hold you over fir a while.
 

MachV

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#18
this statement is not factually correct. Its a critical error that Elon made by closing stores/test drives.
"82% of customers bought their Model 3 without ever having taken a test drive"

Reason: people gave a 2nd email address when they bought knowing that it would allow them more days to return it. In some cases, the wife signed up for test drive but husband also drove and ordered under his name. I would bet most people test drove it if they purchased recently (not early adopters though).

You only need 3.2 seconds to sell the Model 3 performance.
 

garsh

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#19
Its a critical error that Elon made by closing stores/test drives.
This will save Tesla a LOT of ongoing costs. That includes all of their ongoing lawsuits in states that have refused to allow them to open a store.

Tesla may lose some potential customers who balk at the idea of purchasing a car sight-unseen and without a test drive. But they can afford to do that as long as they continue to be able to sell every car they produce. Plus, there are other ways to procure a test drive for those who decide they must have one. You could find a Tesla-owning friend who is willing to let you try out his car. You could rent a Tesla on Turo, or Enterprise.

So far, there are enough people who are willing to purchase a Tesla this way. I think they'll be find with this decision.
 

SR22pilot

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#20
I worry about this move long term. The Tesla store helped set a very upscale image for Tesla. The stores had an Apple store feel. They generated lots of foot traffic and excitement among people. I think the mall locations were brilliant. Even at $35K entry level the Tesla line is an upscale product. Tesla still has an awareness issue. The mall locations have helped a lot with that. A store location also makes people feel the company is "real." I don't know the financials so I hate to second guess. It may be the correct financial moves but I will miss the stores. I would often drop in. I think it helped prospective buyers to see happy owners dropping by to say hello.