Tesla to close local showrooms

Tesla’s sites are under threat after chief executive Elon Musk announced plans to move sales online.

The electric car manufacturer has 19 showrooms in the UK including Knutsford and Stockport. Only a “small number of stores in high-traffic locations” will survive the shift in strategy.

It has been struggling in recent months to deliver on its ambitions, with challenges caused by manufacturing capacity, the car’s cost price and Musk’s occasionally-erratic public behaviour.

In an email to staff, Musk revealed Tesla will “shift all sales worldwide to online only”.

He said: “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.

“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 $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.”