The Guardian:
Tesla is closing most of its stores in a cost-cutting measure, so it can lower the starting price of its Model 3 to $35,000.
Elon Musk, the billionaire chief executive of the electric car and technology company, said that a shift to selling online only was essential to make it financially viable to lower the current starting price of $42,900.
He said: “This is the only way to achieve the savings for this car and be financially sustainable. It is excruciatingly difficult to make this car for $35,000 and be financially sustainable.”
While I wouldn’t call this a disastrous move for Tesla, my wife and I went on a Tesla test drive this past summer and, while we’re not in the market for a new car, there’s no chance we’d buy one without being able to do a test drive.
Elon Musk – con man #2
Giving up on that direct customer relationship seems like a mistake. Look at how important Apple’s retail stores have been.
I’m increasingly bearish on Tesla’s future. The established car companies are coming quickly.
They mention service coming to you. Perhaps test drives would, too.
“there’s no chance we’d buy one without being able to do a test drive.”
I don’t see the connection. They can enable test drives without paying the huge overhead of keeping stores open — you reserve a free test drive online, they show up at your door at the appointed time with the car you want to test, you test drive the car, if you are happy, they have the necessary paperwork ready for you to sign, or you can buy it online later on after sleeping on it.
Either way, it’s vastly cheaper for them to keep one or two employees and a couple vehicles stationed in a city, then to keep a storefront open in the same city.
In *GIBSONS*? Not bloody likely. 🙂
Yeah, I think test drives can be engineered around. As it is, they are popular enough that you can rarely do it walk-in (at least, in CA).
However, the ability to sit in the car and feel how nice it is is a store experience that won’t be matched elsewhere, unless you happen to have a friend with the car.
It also establishes mindshare. If asked if we want to go to the mall, my 3-year-old says “yes! and go to the Tesla store!” He excitedly recognizes Teslas on the road as a result.
I like the price drop, but the closure of the stores is really disappointing. I’m curious to see how sales fare.
Maybe they’re going to buy space in the stores of independent dealers? Then there’s still a showroom in your town that you can go to, in which you can experience the vehicles and arrange a test drive, but without all the overhead of running a dedicated “Tesla Store.”
I’m sure Nick and Jesse could deliver it.
I don’t buy cars based on test drives from a dealer, I will usually rent/borrow one for a day to get a real feel for it. I think if they offered rentals then that would a better strategy than a sales floor. At least for people like me.
Also, this skips the constant hassles that Tesla gets from State legislatures and car dealer associations who work at keeping them out of selling within a market area.
Not to you, but I imagine the vast majority of most luxury car buyers live in or close to major cities.
According to the comments in the Ars Technica article on this topic, there’s a seven day/1000 mile return policy for any Tesla vehicle purchased on-line.
Probably save themselves a heap of money by not having huge stores, rent, staff – all the “olde” ways of doing things. Seems if you want to reinvent the future, do it properly.
What a waste of money to have a service set up for people to test drive a car when they are not in the market for one. How self indulgent. Rent one if you want to see how it is.
Can’t rent them around here. Cheaper to do a test drive. 🙂
Yeah. Musk keeps talking about these so-called Tesla cars. But has anybody every bought one? Seen one? They don’t exist. Classic con man.
Ah, yeah, probably not to your door in Gibsons. LOL!
They might do an “owner evangelist” thing where an owner can provide a test drive and get some $$ back if you buy the car. I know some trailer companies do this.
Well, since nobody answered your concern, per Musk and Tesla, after you a buy a car, you can drive it for up to 7 days/ 1,000 miles and return it for no charge. There’s your test drive, real conditions on how you want to drive, not some loop around a couple of blocks where. you don’t get a feel for the car.
Don’t own a Tesla personally, but maybe in the future.