Tesla Defies Convention and Pays for It as Shares Slide
In this Feb. 9, 2019, file photograph, buyers look over a Model 3 in a Tesla store in Cherry Creek Mall in Denver. Tesla is shifting all of its sales from stores to the internet, saying the move is needed to cut costs so it can sell the mass-market Model 3 for a starting price of $35,000. The Palo Alto, California, company announced the change Thursday, Feb. 28.
AP Photo by David Zalubowski
NEW YORK (AP) - Tesla is suffering one of its worst sell-offs of the year after announcing it would begin closing all of its stores in favor of selling its electric cars exclusively online.
The goal is to allow Tesla to lower the price of its Model 3, the vehicle that CEO Elon Musk envisions as the company's first mass-market vehicle.
The last time the Tesla shares were hit this hard was on Jan. 18, also following actions by Musk intended to lower the price of the Model 3. On that day, Musk said 7 percent of Tesla's workforce would be let go.
The base price for the Model 3, Tesla's cheapest car, is now $44,000. Musk believes the mid-$30,000 range is the sweet spot.
Tesla Inc. tumbled 8 percent Friday.