Breaking: Tesla dealerships to close?

Tesla has announced plans to shift all sales worldwide to online only – putting the future of local dealerships in question.

As part of the announcement of a new, cheaper Model 3 version today, the company announced the change.

“To achieve these prices while remaining financially sustainable, Tesla is shifting sales worldwide to online only,” it says. “You can now buy a Tesla in North America via your phone in about 1 minute, and that capability will soon be extended worldwide.”

“Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the US$35,000 Model 3 price point earlier than we expected.”

“Over the next few months, we will be winding down many of our stores, with a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centers.”

What this means for local dealerships is unclear, with a Tesla Australia and New Zealand spokesperson unable to confirm what the move means at this end of the world.

As most New Zealand and Australian dealerships feature service operations, it is possible they will continue to operate in some form. Tesla says service investment will increase under the new system.

“At the same time, we will be increasing our investment in the Tesla service system, with the goal of same-day, if not same-hour service, and with most service done by us coming to you, rather than you coming to us. Moreover, we guarantee service availability anywhere in any country in which we operate.”

In its home market Tesla moved away from the traditional dealer model – going up against legislators in states that were opposed to it not partnering with local operators.

New Zealand has one store at Auckland’s Karangahape Road, while Australia has five stores – Brisbane’s Fortitude Valley, Melbourne’s Chadstone and Richmond, and Sydney’s Martin Place and Lower North Shore.