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Friday 8 March 2019

Tesla Online Sales Strategy Creates Plenty Of Controversy

Tesla’s sudden announcement last week that it is closing most of its stores and transitioning to a 100% online sales model has created a firestorm of criticism and pushed the company’s stock price to a 5 month low. 

In the media, Forbes and Fortune have run stories this week decrying the move as wrongheaded and possibly dangerous to the company’s very existence.

One investment professional who is not concerned about Tesla’s new online sales strategy is ARK Invest CEO Cathie Wood. According to Fortune, she told Bloomberg on March 4 that, even though the decision to close stores and go fully online was “abrupt,” she wasn’t as surprised as other investors. “We got the sense something was up because he is still competing against other auto manufacturers who have their costs screwed down, but at some point, his pricing is going to drop below theirs.” At 9%, Tesla represents the largest investment in the ARK Invest portfolio.

Read more on cleantechnica.com

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