Many employees of Tesla were struck by Tesla’s Chief Executive Officer, Elon Musk’s surprise announcement last week that Tesla is going to close most of the physical stores and move to online-only sales.
The news reached to many sales personnel when a public blog post was published on their website on Thursday afternoon. The information was gathered from individuals who were asked not to discuss any sensitive matters. Sanjay Shah was among the key persons involved in implementing the online-only sales strategy. Since his arrival into the company from Amazon last summer, he has taken on various additional responsibilities. Sanjay joined Tesla being the senior vice president of the energy operations and also oversees that business.
There were no comments received from Tesla regarding the sales shift beyond the blog post on Thursday. Later that day Musk emailed all staffs. Elon’s abrupt move has shocked some investors, like Alex Chalekian. He is founder and CEO of Pasadena, California’s The Lake Avenue Financial. His firm manages above $150 million client assets. All Tesla stocks that were held for advisory clients were sold on Friday.
Chalekian explains Musk’s decision as “total 180-degree turn” of the event. He owns a black Tesla Model S and further informs in the phone interview that Tesla was all along planning to expand their stores, and just like that, they are suddenly planned to close all the stores. It brings huge financial concerns among investors.
An 11 percent drop in the stock of Tesla since Thursday. Tesla’s market value shaved around $6 billion. Tuesday the shares were 0.2 percent down in New York since October 22 it was the lowest closing amount.
Until the announcement of last week, expansion seemed as Tesla’s store strategy, but the plan completely reversed. Already several stores of Tesla has shut down.