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Elon Musk just emailed all Tesla employees to 'clear things up' about the company's plan to close stores

Mar 28, 2019, 00:24 IST

Hannibal Hanschke / Reuters

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  • Elon Musk sent an email to all Tesla employees Wednesday with details about the company's plan for retail stores.
  • In February, the company blindsided many employees when it announced it would close many of its stores and shift all sales online.
  • In his company-wide email Wednesday, Musk said that while all sales will be online, some customers still want to speak to a Tesla representative or take a test drive.
  • He also said that underperforming stores will be given a fair opportunity to prove they deserve to stay in business.

Elon Musk on Wednesday emailed all Tesla employees to clarify details about the company's plan to close many of its retail stores.

The surprise move to close stores and move sales online - which was walked back slightly in March - took staff by surprise and had a huge impact on workforce morale, workers have told Business Insider at the time.

In his email, a copy of which was seen by Business Insider, Musk explained that stores with lots of traffic "will absolutely not be closed down," but that stores with fewer sales will "gradually be closed down."

"This is analogous to seeds on barren ground," Musk said in the email. "There is no reasonable way to justify keeping such stores open."

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Tesla did not immediately respond to a request for comment from Business Insider.

Last week, Musk sent another company-wide email about end of quarter vehicle deliveries. In that announcement, he told workers that everyone's "primary priority" should be getting cars delivered before the end of the first quarter on Sunday.

Musk also explained that while all sales will still be online, that announcement only refers to where the transaction occurs.

"Unlike buying from other carmakers, ordering a Tesla doesn't require any *physical paperwork*," the email reads. "However, many potential Tesla owners will still want to talk to a Tesla representative in person or want a test drive from a Tesla representative."

Do you work for Tesla? Have a story to share? Get in touch with this reporter at grapier@businessinsider.com. Secure contact methods are available here.

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Here's the full email:

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