Tesla to shut stores in online sales shift

STORE closure plans by electric car manufacturer Tesla have raised questions about the future of its sites in the UK and Ireland.

Tesla announced yesterday that it will only sell its electric cars online to allow it to market its Model 3 vehicle for 35,000 dollars (£26,335) in the US.

As a result, the Silicon Valley company said it would be “winding down many of our stores” over the next few months, with “a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centres”.

Details of the number of possible store closures or job losses have not been revealed, but Tesla has 378 stores and locations worldwide.

The firm’s website lists it as having 20 stores in the UK and Ireland, some of which are combined with service centres. This includes one at the Mall at Cribbs Causeway, 10 sites in and around London, two in Birmingham, two in Greater Manchester and locations in Milton Keynes, Cambridge, Leeds, Edinburgh and Dublin. Its website also lists sales representatives in Aberdeen, Glasgow and Newcastle, and other service centres in Milton Keynes, Bristol and Edinburgh.

A spokeswoman for Tesla was unable to provide details of how the company’s plans might affect its operations in the UK and Ireland.

Tesla chief executive Elon Musk wants to produce a mass market sedan at the 35,000 dollar price point to help the company reach more consumers and generate greater sales.

The online sales shift will enable Tesla to lower all vehicle prices by six per cent, on average, including its higher-end Model S and Model X.