Tesla Is Rumored to Be Making a Huge Business Change

Jane Lu
· 3 min read
Innovation is a key to success in any industry, but in the electric car market, innovation is the standard.
, one of the largest manufacturers of electric vehicles, is known for revolutionizing the way we power cars. Now they’re looking into ways to improve the car buying experience.
With technology evolving at a rapid pace and a
growing list of competitors
, Tesla may be re-thinking how it markets and sells its vehicles to consumers.
The process of buying a Tesla vehicle might start to look a lot different.

Insiders say Tesla is shifting their business strategy

According to sources within the company, Tesla plans to make a big shift in its retail strategy, as reported by
. The company will focus on cheaper showrooms, remote managing of test drives, and delivery centers. This move would make sense since most Tesla buyers are already placing orders online.
Tesla’s retail approach has been in flux over the past few years. In 2018, Tesla’s initial focus was on luxury, high-traffic retail spaces such as upscale shopping malls.
In 2019, Tesla CEO Elon Musk shocked both customers and employees when he announced they would close all retail locations. This statement, however, was quickly recanted, and almost all retail locations were kept open.
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What would these changes look like?

The biggest change for Tesla would be stepping away from high-end, luxury mall spaces. The shift would mean fewer physical stores and lower overhead costs for rent and staffing.
reported that Tesla would opt for less expensive retail locations and offer more delivery hubs.
Some retail employees would move to the cheaper locations, but the majority will work remotely to help people place orders online. The hubs would serve as the pickup location for Tesla customers.
Tesla is looking to rent spaces for test drive fleets and virtual employees might be able to guide customers through remote test drives.

The new strategy is beneficial for consumers

These changes aren’t as radical as the ones proposed in 2019. The new strategy would mean big boosts in revenue for the company and more buying options for consumers.
Since a lot of Tesla customers already order online, this would make the purchasing process even easier. The addition of new delivery centers can make picking up a new vehicle more convenient. Retail locations would still be available for consumers who don’t want to order online.
This also means Tesla won’t eliminate much of its workforce, since employees can shift to remote work. This strategy is much more developed compared to the 2019 plan.
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