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Retail is dead: why Tesla will get more profit by closing stores
Elon Musk recently announced that Tesla will close 10-30% of retail stores with low efficiency and completely change its sales strategy. Some shareholders of the company have already expressed their skepticism about this, while others, on the contrary, are optimistic about the initiative of the management.
Musk believes that closing retail stores is the best solution to maintain the company’s profitability while reducing the price of Model 3 to the base $35,000. In General, the optimistic forecasts of analysts indicate 4 main reasons why the closing of showrooms is a profitable step for the company. Continue reading
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