FREMONT (CBS SF / AP) — Tesla is suffering one of its worst sell-offs of the year after the Bay Area car company said it would begin closing all of its stores in favor of selling its electric cars exclusively online.
The goal is to allow Tesla to lower the price of its Model 3, the vehicle that CEO Elon Musk envisions as the company’s first mass-market vehicle.READ MORE: Police Arrest Man After He Drives Onto Mineta Airport Tarmac
The last time the Tesla shares were hit this hard was on Jan. 18, also following actions by Musk intended to lower the price of the Model 3. On that day, Musk said 7 percent of Tesla’s workforce would be let go.READ MORE: UPDATE: Many in East Bay Still Without Power
The base price for the Model 3, Tesla’s cheapest car, is now $44,000. Musk believes the mid-$30,000 range is the sweet spot.
Tesla Inc. tumbled 8 percent Friday.MORE NEWS: Menlo Park Man Stabbed at Party
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