Elon Musk e-mail to Tesla staff tries to clarify retailer closures

Elon Musk e-mail to Tesla staff tries to clarify retailer closures

After Tesla’s sudden about-face on plans to shut shops and go all-in with on-line automobile gross sales, Elon Musk emailed staff to clarify the state of affairs. Electrek obtained copies of the message and Enterprise Insider reported on its contents, which nonetheless did not present a lot in the best way of tangible details about potential closings and layoffs. Within the message, Musk instructed staff:

– Shops with a excessive visitation price and that result in important gross sales will completely not be closed down. It will not make any sense to take action, besides in uncommon circumstances the place the hire is absurdly excessive. Furthermore, Tesla will proceed to open shops all through the world that meet the above standards.

– Shops which might be in a location with low visitation charges (ie empty most of their opening hours) and result in low gross sales will steadily be closed down. That is analogous to seeds on barren floor. There isn’t any affordable method to justify maintaining such shops open.

– Shops which might be someplace within the center might be evaluated over time to see there may be some method to permit them to cowl their prices. If there may be, they are going to stay open, in any other case not. Nevertheless, these shops might be given a good alternative to show their case.

The above ideas additionally apply to the gross sales staff. Nobody who’s a serious contributor to demand era might be let go. That might make no sense. Nevertheless, typically, in an organization with 45,000 individuals, issues occur that make no sense.

It is apparently meant to reassure high-performing gross sales individuals and people at well-performing places, however with out concrete metrics they could nonetheless really feel unsettled. For now, Tesla has larger costs and plenty of retail places stay open, however any spots that are not doing constant enterprise are probably on the chopping block because it emphasizes extra environment friendly on-line gross sales processes.

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