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Tesla's online sales strategy rejects massive paychecks



Just a few weeks after the announcement of the new online sales strategy, Tesla is now back to much of this strategy, leaving essentially a massive payroll rate for its thousands of retailers.

As we previously reported, Tesla launched the long-promised $ 35,000 version of Model 3, 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, Tesla turned into retail employee compensation and started closing the first wave of stores.

We also reported on Friday that Tesla froze its store closure and layoff as part of the chaotic sales strategy change.

In the middle of the night Sunday, the automaker announced some important changes to the strategy clearing, including leaving most stores open and partially raising prices.

Most stores will remain open and Tesla will even open some stores that were closed for the week. Tesla CEO Elon Musk said the automaker will keep only "a small number" of stores, but now it is about 90% of sales outlets.

In an email sent to employees and obtained by Electrek, Musk who only stores in "unclear places" with low traffic, is closed:

"For the most part, about 1

0% of Tesla outlets we closed Recently, the Sherlock Holmes test does not pass, meaning, most of these stores are in such difficult or unclear places, only Sherlock Holmes could find them! Although sales through stores were our only form of sale, we would still have shut them down . "

Therefore, Tesla should close these sites despite online sales strategy change.

The car manufacturer previously announced that you are moving away from test stations and instead focuses on a simple return policy, but Musk now says that test stations will be available in the stores again.

Warehouses will still be available. For custom orders, employees will guide customers to order by phone online, which is quite similar to how people bought in the store before transitioning to online sales.

Finally, the role of retailers remains almost unchanged from what they did before the original announcement, but they saw their compensation drastically slashed by removing sales receipts and bonuses.

We asked Tesla about the compensation problem, but an automaker spokesman refused to comment.

Electrek's Take [19659015] I think most people would agree that the return of the transition is a good thing.

In my opinion, the bigger question is: Was there just some bad foresight or was there a way to cut retail compensation? [19659003] Some believe that it is just chaotic – not well thought out – relocation of Tesla:

While others believe that Tesla has planned this "online-only" sales transition to drastically cut personal compensation for individuals:

Normally, I do not tend to be attributed to malice that can be explained by stupidity, but I have to admit that there are some things that look strange in this situation.

For example, Elon's presentation of test drive and online sales statistics based on model 3 sales in the US in 2018 shows misleading. In 2018, Tesla had a limited model 3 screen and test drive fleet, as well as a large backlog of people who reserved model 3.

It will inevitably be the data against online sales without test stations, and it is not surprising that "78% of all model 3 orders were placed online, rather than in a store, and 82% of customers bought model 3 without having a test drive, "as Elon stated.

I find it hard to believe that Elon or Tesla, basically do not know that a broad dataset, including model S and model X in all markets, would be somewhat more representative.

We did a survey of Tesla owners on Electrek (admittedly ignorant but with thousands of data points) and it clearly shows that the majority of people actually used Tesla's retailer as part of the buying process, and nearly half of them took a test drive:

The future of sales is definitely online. I do not argue for it. But the transition is different for different types of products, and cars will probably be among the latest product types to go online only.

Tesla's retailer is undoubtedly an important part of Tesla's sales efforts.

Elon says sales are still online only:

"To be clear, the entire worldwide sales will still be made online, as potential Tesla owners enter the stores, simply showing how to order a Tesla on the phone in a matter of minutes. "

Having witnessed several Tesla sales in the stores, this is almost the same as it was before when Tesla advisers would go through the buying experience of the configurator.

Lastly, this web-based strategy has turned out Not to have a real significant impact on the daily work of Tesla's boss. They are still expected to provide test stations, run sales and attempt to match buyers with vans.

The main difference for them is that their compensation has been significantly cut – 50 to 60% in some cases for Tesla's top sellers. There is a big enough drop in compensation to make important lifestyle changes and drive them to find new jobs.

I am actually OK with Tesla to remove the commission, which can create a better sales environment, but you have to compensate with increasing wages if they basically do the same job.

These people helped Tesla succeed and they helped accelerate the transition to electric vehicles, which are part of Tesla's mission.

As Tesla grows, they should still have room for them in the company and can find other efficiency improvements to reduce prices.

After all, the company is basically just as good as its people.

I think that Tesla might need some other leadership to revive its retail after this dark period, which I surely have left a bad taste in the mouth of many employees.

Maybe Tesla will take back George Blankenship. What are you these days George? Up for a challenge?


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