VIDEO: Tesla to Shift to Online Sales, Will Warwick Store Be Impacted?

VIDEO: Tesla to Shift to Online Sales, Will Warwick Store Be Impacted?

As a result of the shift to online sales, Tesla says it will be “winding down many of our stores.” The company says a small number will stay open in “high-traffic locations” to serve as “galleries, showcases and Tesla information centers.” 

The Warwick, RI location on Quaker Lane -- an old Hyduai dealership -- may be impacted. The location is yet to open after being announced nearly a year ago.

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Joe Shekarchi, who is the attorney for Tesla in Rhode Island and handling the permitting of the new Tesla store in Warwick, tells GoLocal that is unaware of any change in plans. "Last week we were pulling permits for the location," said Shekarchi, who is also the House Majority Leader.

Elon Musk says the shift to online exclusivity is intended to reduce the price of all Tesla cars by 6%. Model 3 cars will now be sold for $7,900 lower than their previous starting price of $42,900.

In January, Tesla announced plans to cut its full-time workforce by 7%, according to the Financial Times.

The exact number of employees that will be laid off has not been revealed, however, it is expected to be in the thousands.

"Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months," said Musk in an email to employees.