Car Industry

Tesla's store closure plans get explained in an email to employees

Elon Musk offers up some general explanations for how he plans to decide which stores stay open and which will be closed.

Tesla stores with less than stellar numbers will have a chance to shape up before being closed.

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A few weeks ago we got news from Tesla that it was planning on closing all of its retail sales operations, leaving only a few physical locations open for people to come and experience its cars.

Then shortly after that announcement, Tesla released another statement saying that it would only be closing some of its retail locations but at that time it wasn't clear how the Big T was planning on determining which of its cars would stay and which would be closed.

Well, according to a report published Wednesday by Business Insider, Elon Musk sent all Tesla employees an email explaining that stores with good numbers would "absolutely not be closed down" and that stores that hadn't been meeting expectations would be allowed a short period to correct things before being on the chopping block.

None of that is rocket science, obviously, but it could have a profound effect on the flagging morale of Tesla's retail staff. A little bit of job security goes a long way, after all.

Still, the decision to keep its retail stores open does mean that Tesla has to walk back its price drop, with plans to bump them up by an additional three percent set to go into effect at the beginning of April.

Tesla didn't immediately respond to requests for comment.