The stock price of Tesla (NASDAQ: TSLA) plummeted after the electric car manufacturer announced its decision to close most of its stores and the possibility that it will post a net loss in the first quarter of 2019.
TSLA shares closed $294.99 each, down by 7.84 percent on Friday.
In a blog post on Thursday, Tesla explained that it is “shifting all sales online” to “remain financially sustainable” and reduce the prices of its vehicles by around 6 percent on average.
The electric car manufacturer did not say how many of its 131 stores will be shuttered. However, it said a “small number of stores in high-traffic locations” will remain as “galleries, showcases, and Tesla information centers.”
During a conference call with reporters, Tesla Elon Musk confirmed the store closures. He also stated that the company will reduce its headcount and will not be profitable in the first quarter.
Musk said, “We will be closing some stores, some reduction in headcount as a result — there’s no question about that. I wish there was some other way. Unfortunately, it will entail a reduction in force on the retail side. There’s no way around it.”