Situation: In early March, Tesla announced to the U. business news media that it would be closing most of its retail stores (i. car dealerships) by…

Why can the letter be considered a good or bad one? Did Elon Musk addressed all major employees/ business concerns?
Situation: In early March, Tesla announced to the U.S. business news media that it would be closingmost of its retail stores (i.e. car dealerships) by mid-2019 and would be reducing headcount (i.e. firingemployees) at those locations. However, in mid-March, Tesla management changed plans and informedthe news media that it would be closing fewer stores than originally planned. Tesla’s key sales strategy isnow to mainly sell cars via online sales.Tesla employees were confused by this news, resulting in employee retention, recruitment andproductivity concerns. Did Tesla have major financial problems? Who else would be terminated?From: Elon MuskTo :EveryoneMarch 27, 2019Subject: Tesla Stores & SalesThere are still some uncertainties around Tesla car dealer stores and the sales team. Hopefully,this note clears things up. Please let me know if there is anything I’ve forgotten to address. 1Stores with a high visitation rate will absolutely not be closed down but those with low visitationrates will be closed down. This is analogous to planting seeds in barren soil. Why plant seedswhen you know they will not grow. Stores that are somewhat in the middle will be evaluatedover time to see if there is some way to cover costs. If there is, they will remain open, and if not,they will be closed.2In addition, the same principles also apply to the sales team. No one who is a major contributorto demand generation (i.e. sales) will be let go. That would make no sense. However, sometimes,in a company with 45,000 people, things happen that make no sense.3What is meant by "all sales will be online" is the act of purchasing a Tesla car will always bedone via the new owner’s phone or computer. This is true whether they are at home or in a store.Unlike buying a car from other carmakers (i.e. Toyota, Ford, etc.), ordering a Tesla car doesn’trequire any "physical paperwork." It means that ordering from us is super easy, not much harderthan ordering an Uber. However, many potential customers will want to talk to a salesrepresentative or take a Tesla car for a "test drive."4Stores will also carry a small inventory of cars for "test drive" purposes and also for people whowant to buy a car right away, and not wait for their car to be delivered a few days later. This iswhy stores and Tesla product specialists will always be of critical importance to our long-termsuccess.5Thanks,Elon







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