Telsa is going online-only for car sales, closing retail stores

Elon Musk Moves Tesla Shares With Cryptic Tweeting About News To Come

Earlier in the day, the cheapest version of the Model 3 was available starting at $42,900. A "small number" of stores located in high-traffic areas will be converted to galleries, showcases, or information centers, the company says.

Musk did not give an indication as to how many employees will be laid off.

As of the fourth quarter, Tesla said it recently opened 27 new locations, bringing its total of stores and service centers to 378. A steep price cut will undoubtedly hurt margins and Elon touched on this during the media call saying, "It is excruciatingly hard to make this vehicle for $35,000 and still be financially sustainable". "The difference in Tesla's case is it remains unclear if Tesla can make money on a US$35,000 Model 3". Elon Musk's electric-auto giant Tesla said Wednesday it has curbed production for some of its most expensive vehicles after its second mass layoff in seven months, fueling concern over the company's ability to survive without making as numerous top-dollar cars that helped it become a household name.

Musk says he entered the auto industry to help save the planet from harmful emissions and break the world's oil dependence. Since tax credits will continue to decline over 2019, "this is really exactly what the doctor ordered", he said.

It's not now clear how long it would take online vehicle orders to reach global customers, or if the returns policy will be the same.

That is particularly true of younger, technologically fluent consumers who already are accustomed to buying nearly everything at Amazon and having it delivered to them quickly, said Karl Brauer, the executive publisher of Kelley Blue Book.

To get "full self-driving", buyers will need to stump up $5,000 extra, which enables "automatic driving from highway on-ramp to off-ramp including interchanges and overtaking slower cars", auto-parking, and "summon", the feature that makes a parked vehicle find the owner.

Tesla has announced general availability of the long-awaited $35,000 Model 3 base edition that Elon Musk promised over three years ago. Many customers have complained on social media and online forums of long waits for parts and repairs on their vehicles.

"True, the US$35,000 Model 3 was always the goal but offering lower price vehicles is unquestionably a demand lever, meaning demand for the higher-end trims is slowing".

Wall Street never wants to hear that kind of news and Tesla stock immediately sank over 3 percent in after-hours trading after the news broke.

Tesla has stated that the closing of the physical stores is necessary in order to keep the company financially stable. But Musk said it's "likely" Tesla will bounce back with a profit during the April-June period.

In a series of tweets to his 25 million followers following charges from the US Securities and Exchange Commission earlier this week, Musk accused the regulator of failing to read Tesla's annual reports and said its oversight was "broken".

Coupled with his SEC woes lingering overhead, Mr Musk hasn't exactly lost his investors' confidence, but he hasn't exactly filled them with it either.

Everything you need to know about Tesla's onboard computer system called Autopilot, and the company's plans for a self-driving auto.

The Tesla CEO has until March 11 to submit a brief to U.S. District Judge Alison Nathan on why he shouldn't be held in contempt.

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