Tesla to shut down stores, rely on online sales
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Elon Musk is delivering on one big promise — a $35,000 Model 3 — while warning Tesla Inc. may not be able to pull off a quarterly profit as projected earlier.
It’s unlikely Tesla will earn money in the first quarter due to challenges getting electric cars to China and Europe, the chief executive officer told reporters Thursday. The company announced the long-awaited cheaper version of its sedan and said it can afford to drop prices because it’s shutting many of its stores worldwide to cut costs.
Moving all sales online, which will involve more job cuts, allows Tesla to lower vehicle prices by about 6 percent on average, the company said in a blog post. Its website made a $35,000 version of the Model 3 available for the first time, almost three years after Musk started taking orders.
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