Tesla's New Online-Only Model Faces Challenges, Morningstar Analyst Says

The transcript discusses Tesla's pricing strategy, focusing on the $35,000 Model 3 and the challenges of maintaining financial sustainability. It explores Tesla's shift to an online sales model, potential layoffs, and legal challenges in states requiring dealer franchises. The discussion also covers consumer behavior, the importance of test drives, and the economic implications of Tesla's pricing strategy. The transcript concludes with insights into Tesla's stock performance and the impact of the $35,000 Model 3 announcement.

What is the potential impact of Tesla's new online sales model on its workforce?

• Hiring more salespeople

• Potential layoffs

• No change in workforce

• Increase in workforce

How does Tesla manage to sell cars in states with restrictive dealer franchise laws?

• Through gallery stores and out-of-state purchases

• By offering discounts

• By partnering with local dealers

• By opening more stores

What is a significant challenge for consumers when buying a car online?

• Lack of online payment options

• Inability to test drive the car

• Limited car models available

• High shipping costs

What is Tesla's policy to address the challenge of test driving for online purchases?

• Extended warranty

• Seven-day return policy with 1000 miles

• Discount on first purchase

• Free test drives at home

What is the base color for the $35,000 Model 3, and how much does it cost to choose a different color?

• Blue, $2500

• Red, $2000

• White, $1000

• Black, $1500

What is the expected impact of the $35,000 Model 3 announcement on Tesla's stock prices?

• Rapid increase

• No change

• Steady rise

• Potential decline

Why is the $35,000 price tag for the Model 3 considered challenging for Tesla?

• It is too high for consumers

• It is not competitive with other brands

• It is difficult to maintain financial sustainability

• It includes too many features