Tesla Inc's move to dismantle its network of high-end showrooms as part of ...
DETROIT - Tesla Inc’s move to dismantle its network of high-end showrooms as part of a plan to launch the long-awaited cheaper version of its Model 3 sedan has pushed the electric carmaker into uncharted territory for an industry that has long relied on physical stores to move the metal.
“Customers are becoming increasingly comfortable making purchases online, and that is especially true for Tesla,” Chief Executive Elon Musk said in an email to employees, which CNBC posted online. “There’s a bit of a leap of faith that’s required to have confidence that the moving from a physical distribution model to an online distribution model will succeed,” Tom Vandeventer, portfolio manager with Tocqueville Opportunity Fund, said in a telephone interview. He has owned Tesla stock in the past and still follows the company closely.FILE PHOTO: A Tesla Model 3 car is displayed at the Canadian International AutoShow in Toronto, Ontario, Canada, February 15, 2019.
“Given its seeming abruptness, it does not appear that yesterday’s announcement was made from a position of strength,” Bernstein analyst Toni Sacconaghi Jr said in a research note entitled, “The $35k Model 3 - Genius or Desperation?”
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