Tesla has announced that it will close down most of its retail outlets in a move that will allow it to price its cars cheaper.
According to Electrek, the electric car maker wants to focus on online sales as it says that 78% of the Model 3 orders the company received last year were placed online. Interestingly, it added on that 82% of Model 3 customers purchased the vehicle without test driving first.
With that in mind, the company believes that there was no need to operate the 120 retail store that it has now and will be closing most of it down. Doing so will allow it to reduce prices for its vehicles by an average of 6% and give it the ability to produce the entry-level Model 3 earlier than anticipated.
Furthermore, it has been reported that Tesla started removing commissions from retail employees earned from sales, prompting employees to speculate that the manufacturer has cut bonuses to try and push them out before Tesla needs to layoff staff and pay severance.