Musk said it costs about $2,000 more to sell a Tesla Model S through one of the company stores than directly to the customer.
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Up to this point, Tesla has not done any traditional advertising, unlike other automakers such as Ford (F) or General Motors (GM).
“We are asking ourselves the question ‘how many stores should we open and how does word-of-mouth compare to store- based sales?'” Mr. Musk said.
Out of all 1,600 Tesla Model S used electric cars in the country, there are more owners in Florida than in any state except California. It also has offered a resale-value guarantee. Musk said that the reason the program only runs through the end of September is because it’s a “short-term experiment”, and that the company wants to see how it works before making a “long-term strategic decision” on where to go next.
Sales in the second quarter rose 52% and set a record. If five of your friends order a Model S, you and a guest will receive an invitation to tour the Gigafactory in Nevada – the world’s biggest factory by footprint – and attend the grand opening party. If you refer ten, you get the right to buy a special Founder’s Series Model X for $20,000 off, and if you’re the first to refer ten in your region, you get a loaded Model X for free. The referrals must come before October. 31.
Mr. Musk wasn’t shy about the motives for this program, which comes as the company continues to struggle with existing auto dealership legislation in certain states, like Arizona and Texas. “If it’s a fundamental improvement in cost of sales that we can pass on to customers, that’s a good thing”.
Tesla’s shares, which closed Wednesday at $263.82, have been surging since March 27, when the stock closed at $181.
The Palo Alto, Calif., company announced three new options for its Model S, including a longer-range model, a superfast sports vehicle version and a lower-cost entry level model.
The electric vehicle and energy storage company is slated to report second-quarter results after the close of trading, August 5.
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Christina Rogers contributed to this article.
