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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

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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.

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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.

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

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4 of 11 Tesla Board Members to Step Down by 2020

In November 2018, Musk was replaced by Robyn Denholm as the chairperson of the company’s board

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

In a move that is likely to weaken the powers of Electric Vehicle (EV) maker Tesla Founder Elon Musk and cut some of his strongest allies from the board of directors, the company has said that four of its 11-member board would step down by 2020, thus shrinking the board’s size by more than a third.

The EV maker reportedly said two directors plan to leave its board in June and two more intend to step down next year as part of a move to improve corporate governance of the electric car company.

“Brad Buss, a member of the board since 2009, and Linda Johnson Rice, who joined two years ago, have asked not to be re-elected when shareholders convene on June 11 for Tesla’s annual general meeting, the company said in a preliminary proxy statement,” The New York Times reported late on Friday.

The departing members of the board include Antonio Gracias and Stephen Jurvetson — close friends of Musk who are also directors in SpaceX, Musk’s space launch company.

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

A member of the board since 2009, Buss was also the Chief Financial Officer of solar panel installer SolarCity for two years until Tesla acquired the firm in 2016.

“Shrinking the board will ‘allow it to operate more nimbly and efficiently’,” the company was quoted as saying in The NYT report.

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In November 2018, Musk was replaced by Robyn Denholm as the chairperson of the company’s board.

Musk had agreed to step down as the Chairman of Tesla for three years and pay a $20 million fine in a deal with the stock market regulatory authority, Securities and Exchange Commission (SEC), to resolve securities fraud charges. (IANS)