Was Tesla head Elon Musk’s surprise decision to shut down its retail stores a brilliant move to save money and reduce the cost of the Model 3 electric sedan, or is it a sign of financial trouble for the company? Judging from what the move did to Tesla stock – it has lost about 11 percent of its value sine the announcement — many employees, investors and industry watchers are assuming the latter, particularly as the company seemed highly committed to its retail store plans only about two weeks ago.
“You can now buy a Tesla in North America via your phone in about one minute, and that capability will soon be extended worldwide,” revealed the company in its blog post.
Sounds great, but…don’t retail stores require leases and contracts? the Wall Street Journal wondered out loud this week.
Read the full article at Cantin Automotive Insider.