Tesla temporarily freezes closures and layoffs in chaotic sales strategy change
Tesla is in the midst of a rather chaotic sales strategy transition, and now employees are told that Tesla freezes current store bars and layoffs at least until the end of the month.
As previously reported, the Tesla Long Promised $ 35,000 version of Model 3 launched and CEO Elon Musk said they are planning to make that price viable by moving all sales online, closing stores, and reducing retail.
Last week we reported that Tesla slashed retail employee compensation and they started closing the first wave of stores.
Sources familiar with the matter told Electrek that Tesla has now closed the first 29 stores in the United States and Canada.
An unconfirmed number of employees estimated in the few hundred have been written off with resignation.
Tesla's sales administration has had a conversation with regional management earlier today, and they told retailers that Tesla frozen some change from transit to the end of the month.
Some stores that were not closed were told to stop booking stations last week. They were told today that they are back to business as usual for them, but retailers do not have access to commissions and bonuses, resulting in much lower compensation.
According to sources, some retailers have presented this freeze for the transition as an "opportunity to prove themselves."
That said, sources Electrek said that many employees go away because of the significant pay stroke. Some employees told Electrek that they suspect that Tesla is extending the transitional period and cutting wages to make them stand out, so they do not have to pay retirement.
When asked about the situation, Tesla has refused to comment and referred to a blog post about the move to online sales where Musk wrote that it will take "months" for Tesla to transfer most of its sales online.
In an announcement to employees, Musk also said that the review of the retail and marketing department will take a few weeks.
Electrek's Take
This is a chaotic situation for employees left in the dark for the most part.
It is either to poorly managed transition or it is intentionally done in that way to squeeze out employees who someone suspects.
I don't know which one is worse. Probably the latter, who would throw off the company's greed, and would be disappointing to see from Tesla.
While others will speculate that this freeze for the transition for a few weeks may be Tesla, considering the controversial move, I doubt it. [1[ads1]9659003] I think we'll see more store closures in a few weeks.
What do you think? Please let us know in the comment section below.
