NZs flagship Tesla store could be closed less than a year after launch
Monday, 4 March 2019
The fate of New Zealand's Tesla stores remains unknown this week, after the car brand revealed its plans to close stores in a money saving strategy.
Tesla is shifting its sales to online only, the company reported in a blog post last week. The news was slipped into an announcement about the long awaited availability of the Model 3 sedan, a smaller and more affordable car designed to deliver electric vehicles to the masses.
The decision comes less than a year after the first Tesla store opened in New Zealand on the corner of Karangahape Road and Hereford Streets in Auckland, one of the largest Tesla stores in the world. The brand launched its official Kiwi distributorship back in February 2017.
A spokeswoman for Tesla in New Zealand said it had no further information than what had already been announced.
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The move away from bricks and mortar business will see its worldwide stores close over the next few months, with a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centres, the post said.
There was no comment about the number of employees that would be affected.
The company said the reason for the sudden change in sales strategy was to enable the affordability of the Model 3, which retails in the United States for US$35,000 (NZ$51,361), and for continued financial viability of the business.
'Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6 per cent on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected.'
A Tesla ordering page says the 'standard range' Model 3 would be able to drive 354 kilometres on a single charge and be delivered within two to four weeks.
Tesla said sales should still be quick and easy, and said customers could expect 'same day, if not same hour service', at least in the United States.
For customers wondering how they might take a test-drive under the new e-commerce model, Tesla says its offering a seven day or 1000 mile returns policy.
Tesla has fixed pricing and a non-profit servicing policy - the reverse of many dealerships which rely heavily on service work for revenue and is part of its plan to future proof electric vehicles.
Right-hand drive production for the Model 3 starts in 2019.