Tesla did announce in February 2019 that it planned to close many stores and shift to online-only sales—but it revised that plan within weeks. The company said it would close about half as many stores as first planned, while keeping online ordering and some in-store assistance. Its latest annual filing still describes website sales alongside company-owned retail locations, so the headline does not mean Tesla shut all its stores.
What happened to Tesla’s store-closure plan?
In February 2019, Tesla said it would wind down many stores as part of a move to online-only sales. In a March update, the company changed course: it said it would keep significantly more locations open and close about half as many as previously planned. Tesla’s March 2019 statement described the revised plan.
The announcement concerned Tesla’s company-owned stores and direct-sales model, not a shutdown of a network of franchised dealerships. In the revised plan, Tesla said sales would still be completed online, but store staff could help visitors place orders. The company also said customers could request test drives and that stores would have a small number of vehicles available for immediate delivery. Contemporary reporting by TechCrunch noted that Tesla did not provide a final store count.
Does Tesla still sell cars in person?
“Online sales” describes how Tesla said customers would complete purchases; it did not mean every physical retail location would disappear. Tesla’s 2025 Form 10-K says its sales strategies include its website and refers to continued expansion of retail and service locations. The filing supports the conclusion that physical locations remain part of Tesla’s retail footprint, but it does not give a current store-by-store count.
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Whether a customer can complete a transaction or receive particular services at a location may depend on local rules and the location’s offerings. Tesla’s filing warns that laws in some U.S. states may limit sales through company-owned stores. It does not resolve the rules for every state or address test-drive availability at every current location.
Why did Tesla reverse part of the plan?
Tesla said the original store wind-down was intended to reduce costs and pass savings to customers. After deciding to keep more stores open, it announced an average worldwide vehicle-price increase of about 3% in March 2019, with exceptions described in that historical announcement. That figure and those terms apply to the 2019 decision, not current Tesla prices. Tesla’s price update linked the increase to the smaller-than-planned closure program.
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The company has also historically explained its direct-sales model as a way to educate buyers about its technology and brand. A Tesla representative made that case at a 2016 Federal Trade Commission workshop, while arguing that the traditional franchise model did not suit Tesla’s approach. That was Tesla’s stated rationale, not an independent finding that direct sales are better for every automaker or buyer. The FTC workshop transcript records the discussion.
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How to read the headline
- Accurate: Tesla announced a broad store wind-down in February 2019, then reduced the planned closures in March.
- Also accurate: Tesla said sales would still be completed online, with some in-store help and requested test drives under the revised 2019 plan.
- Not established by these sources: a current store count, universal test-drive availability, or the sales rules that apply in every jurisdiction.
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