Tesla is managing to keep its retail stores open by raising the cost of all its models except the model 3 which will remain at $35,000.00. Tesla is making the bet on quality of product and keeping its retail chains open. About 10% of Tesla’s retail stores closed in the last 3 years but those are the retail stores that where expected to close. This is a big bet on Elon Musks ability to produce and distribute his vehicles.
The fact that Musk is willing to bet on himself and not try to sell off or partner with companies that will be a money suck on future profits when Elon’s bet undoubtedly pay off shows his confidence and I like that. Should gasoline go the way of the dodo bird Tesla is likely to be the big winner. This will make Tesla the car manufacturer the leader in electric automobiles and also electric battery storage which may be a larger business opportunity in itself than cars.
This is the exact opposite of insiders selling. Which we are seeing alot of nowadays. This is the owner of the company betting on itself and that in itself makes me think Tesla is a good long term buy. Beneath is a Tesla Blog post.
“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” the blog post reads. A few previously-closed stores will be reopened, but with fewer workers. And another 20 percent of Tesla locations are under review. “Depending on their effectiveness over the next few months, some will be closed and some will remain open.”