Elon Musk Admits the $35,000 Tesla Model 3 Will Come at a Cost – More Layoffs
Elon Musk finally revealed Tesla’s cheapest car, the $35,000 Model 3, in an announcement on Thursday. | Source: REUTERS/Mike Blake/File Photo
Tesla’s long-promised $35,000 Model 3 is finally here – along with bad news for the firm’s sales and marketing staff, according to the carmaker’s CEO Elon Musk.
In an email that Musk sent to employees, the Tesla chief disclosed the company’s decision to move all sales online. Consequently, the electric carmaker will shutter many brick and mortar stores making some employees redundant, CNBC reports. This was driven largely by consumer trends, according to Musk:
Last year, 78% of all Model 3 orders were placed online, rather than in a store, and 82% of customers bought their Model 3 without ever having taken a test drive.
Tesla estimates that moving sales online will allow the automaker to reduce all car prices by around 6% on average. But Tesla is also expected to hire more service technicians and this could eat into the cost savings, per MarketWatch.
Will the Layoffs at Tesla After $35,000 Model 3 Launch Hurt Employee Morale?
In the email sent to employees, Musk called the planned layoffs a ‘hard decision’. While the prospect of losing a paycheck is a painful one for anybody, among tech firms Tesla employees are the most worried about this possibility. This is according to a survey conducted by Blind, a workplace app.
Per the results of the survey which were released last month, 77.22% of the firm’s employees feared losing their jobs. This contrasted sharply with Google employees where only 10.76% were worried about layoffs.