Tesla Didn't Tell Its Employees It Was Going to Start Closing Stores

[mahatmakanejeeves]

THE MORNING SHIFT
Tesla Didn't Tell Its Employees It Was Going to Start Closing Stores

Justin T. Westbrook
Today 10:07am
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1st Gear: Tesla Announced the Layoffs Publicly Before Telling Its Employees

On Thursday, Tesla announced it would finally produce the long-promised Tesla Model 3 trim priced at $35,000, as well as news that it was shifting its sales to an online-only system. The shift is meant to save the company money, but it also means a reduction in headcount for the Tesla sales staff—most of which reportedly didn’t see this coming.

Here’s more from Automotive News:

Many sales personnel found out about the decision when Tesla published a public blog post Thursday afternoon, said the people, who asked not to be identified discussing sensitive matters.

[...]

The stock has dropped about 11 percent since Thursday, shaving almost $6 billion from Tesla’s market value. The shares finished Monday at $285.36, the lowest since Oct. 22.

Until last week, Tesla’s store strategy seemed to be one of expansion. The company opened 27 new retail and service centers last quarter, resulting in 378 locations worldwide, according to its letter to shareholders. It was the most openings for a quarter since mid-2017.

Tesla also suggested a brick-and-mortar retail strategy was important in its annual report filed Feb. 19, just nine days before Musk announced the pivot to online sales.

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[marybourg]

1. So potential buyers don't get to

test drive the vehicle? How does that work out?

[still_one]

2. They have also angered some buyers who bought before the price drop, and the resale of current

owners went down in price also

[OnlinePoker]

3. I don't know about the reporting rules in the States, but in Canada, they would have to do this

It is a material change in business and by giving their employees advanced notice before the market would open things up to insider trading charges (assuming the employees sold off shares they had).