Tesla is moving car sales online

US car manufacturer Tesla is dismantling its physical stores and moving to an online-sales-only platform to ensure the Model 3 (its entry-level car) will become economically viable to the public.

Tesla, who announced at the end of February 2019, that the majority of its 250 stores would be closing in preference of an online option will ask and answer the question about whether a national physical footprint in necessary in an increasingly digital world.

The announcement comes after Tesla Chief Executive, Elon Musk announced that 78 per cent of all Model 3 orders were placed online with 82% of customers buying the vehicle without ever taking a test drive.

“Customers are becoming increasingly comfortable making purchases online, and that is especially true for Tesla” said Elon Musk.

The lower price could expand the Model 3 market by about 600,000 cars in the United States alone, based on historical sales figures for similarly priced sedans.

Meanwhile, US dealers remain confident in their current approach to car sales.

“We still believe that the franchised dealer model is by far the best way to sell, distribute and service new vehicles,” National Automotive Dealers Association spokesman Jared Allen said.

Source: Tesla to ditch dealerships and move car sales online

5 Mar 2019