Saturday July 20, 2019
Home Lead Story Tesla CEO Elo...

Tesla CEO Elon Musk Explains its Store Closures to Employees

The announcement was followed by a slashing of retail employees compensation and closure of the first set of stores

0
//
Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

Electric Vehicle (EV) maker Tesla’s CEO Elon Musk emailed staffers to explain the situation at the company in the wake of his announcement of closing several of its retail stores and go all-in with online car sales.

“In a new email to employees, Tesla CEO Elon Musk acknowledged some ‘uncertainty’ among the company’s salespeople regarding the sales strategy transition as he tries to reassure them with more details about his plans and expectations,” the Electrek reported on Thursday.

“Stores with a high visitation rate and that lead to significant sales will absolutely not be closed down. It would not make any sense to do so, except in rare cases where the rent is absurdly high. Moreover, Tesla will continue to open stores throughout the world that meet the above criteria,” Musk wrote in an email to his employees.

tesla
Visitors inspect Tesla electric cars at Brussels Motor Show, Belgium, Jan. 18, 2019. VOA

Meanwhile, stores that are in a location with low visitation rates (i.e. empty most of their opening hours) and lead to low sales would be gradually shut down.

When the EV maker launched its long-promised $35,000 version of the Model 3 earlier in March, Musk said they plan to make that price viable by moving all sales online only, thus, closing stores and reducing retail headcount.

Also Read- Contamination Of Contaminating Groundwater In Assam Remains A Silent Issue

The announcement was followed by a slashing of retail employees compensation and closure of the first set of stores. (IANS)

Next Story

Elon Musk Becomes Longest Serving CEO in Global Automotive Segment

Musk has repeatedly pushed workers to hit quarterly goals while managing all the extra production and delivery work piling up toward the end of a quarter

0
Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

For many of us, Tesla is a new entrant in the global auto industry but Elon Musk has actually become the longest serving CEO in today’s automotive segment.

The feat was achieved when then-Daimler CEO Dieter Zetsche, serving as the German automaker’s CEO since 2006, retired in May this year, Teslarati reported on Wednesday.

Musk took over as the electric car maker’s CEO in 2008.

Renault-Nissan-Mitsubishi saw veteran CEO Carlos Ghosn quitting over his alleged connection with a high-profile financial scandal.

Last month, Mitsubishi also announced the departure of its CEO Osamu Masuko.

BMW CEO Harald Kruger has also announced his retirement.

Elon Musk, CEO of SpaceX and Tesla. Wikimedia Commons

Many automakers have new CEOs and only Akio Toyoda of Toyota who joined in 2009 is close behind Musk.

Under Musk, Tesla is breaking all records. The electric car-maker achieved a record production of 87,048 vehicles and record deliveries of approximately 95,200 vehicles in the second quarter of 2019.

In the quarter (April-June 2019), Tesla produced new 72,531 Model 3 sedans and delivered 77,550 of those.

Also Read: WhatsApp Messages Can be Traced Without Diluting end-to-end Encryption

In addition, 14,517 new Model SX cars were made and 17,650 of those were delivered.

Customer vehicles in transit at the end of the quarter were over 7,400.

Musk has repeatedly pushed workers to hit quarterly goals while managing all the extra production and delivery work piling up toward the end of a quarter. (IANS)