Tesla store could shutter after less than a year
The fate of New Zealand’s flagship Tesla store remains unknown this week, after the car brand revealed its plans to close stores in a cost-saving strategy.
Tesla is shifting its sales to online only, the company said in a blog post last week.
The news was slipped into an announcement about the longawaited availability of the Model 3 sedan, a smaller and more affordable car designed to deliver electric vehicles to the masses.
The decision comes less than a year after New Zealand’s first Tesla store opened on the corner of Karangahape Rd and Hereford St in Auckland. It is one of the largest Tesla stores in the world.
The brand launched its official New Zealand distributorship in February 2017.
A spokeswoman for Tesla in New Zealand said it had no further information than what had already been announced.
The move away from bricks and mortar business will see its worldwide stores close over the next few months, with a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centres, the post said.
There was no comment about the number of employees that would be affected.
The company said the reason for the sudden change in sales strategy was to enable the affordability of the Model 3, which retails in the United States for US$35,000 (NZ$51,361), and for the continued financial viability of the business.
‘‘Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about
6 per cent on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected.’’
For customers wondering how they might take a test-drive under the new e-commerce model, Tesla said would offer a seven-day or
1000-mile return policy. Tesla has fixed pricing and a non-profit servicing policy. This is the reverse of many dealerships, which rely heavily on service work for revenue, and is part of Tesla’s plan to future-proof electric vehicles.
Right-hand-drive production for the Model 3 starts in 2019.