Tesla cuts Model 3 price to £26,335 as electric car-marker goes online-only

Tesla cuts Model 3 price to £26,335 as electric car-marker goes online-only
Tesla cuts Model 3 price to £26,335 as electric car-marker goes online-only

Tesla announced on Thursday that it will only sell its electric cars online and market its Model 3 vehicle for 35,000 dollars (£26,335) in the US.

The Silicon Valley company said it would be “winding down many of our stores” over the upcoming months.

Only “a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centres” would remain.

Details to follow

Details of the number of possible store closures or job losses have not been revealed, but Tesla has 378 stores and locations worldwide.

The firm has 20 stores in the UK and Ireland, some of which are combined with service centres.

This includes 10 sites in and around London, two in Birmingham, two in Greater Manchester and locations in Bristol, Milton Keynes, Cambridge, Leeds, Edinburgh and Dublin.

Its website also lists sales representatives in Aberdeen, Glasgow and Newcastle, and other service centres in Milton Keynes, Bristol and Edinburgh.

The store closures will come on top of a decision to cut 3,150 jobs , or about 7% of Tesla’s workforce, announced earlier this year (photo: Jonathan Brady/PA Wire)

Musk’s plan

Tesla chief executive Elon Musk wants to produce a mass market sedan at the 35,000 dollar price point to help the company reach more consumers and generate greater sales.

The online sales shift will enable Tesla to lower all vehicle prices by 6%, on average, including its higher-end Model S and Model X.

Mr Musk said: “This is the only way to achieve the savings for this car and be financially sustainable.

“It is excruciatingly difficult to make this car for 35,000 dollars and be financially sustainable.”

Earlier cuts announced

The store closures come on top of a decision to cut 3,150 jobs – about 7% of Tesla’s workforce – announced earlier this year.

The Model 3 is currently not on sale in the UK, with right-hand drive markets due to begin in the second half of this year.

The car can be reserved online with a £1,000 deposit.

Additional reporting from PA