Tesla closes Beijing showroom as retail strategy changes

There have been rumors that electric car company Tesla has decided to cut costs in the market in China by closing a leading showroom there.

On Wednesday, Tesla confirmed the closure of its showroom located at shopping center Parkview Green in Beijing. However, this doesn’t mean that Tesla is permanently closing the location; on the contrary, the company has already moved it to a new place. It’s located in Raffles City mall. Unlike the previous location, the new one has only one floor and is many times smaller. The showroom itself opened last month.

According to a Parkview Green employee, the reason for the move is that the contract with Tesla has expired, and the company decided to change the showroom locations.

At the moment, Chinese residents have the opportunity to see and test Tesla models in more than 200 outlets across the country.

According to some reports, Tesla is thinking about closing some of its showrooms in large cities, such as Beijing, where rent space is probably more expensive. The reason is also that there are significantly fewer visitors due to pandemic restrictions.

It’s also reported that at the moment the company wants to focus on outlets in suburban areas, where not only car sales and tests take place, but also repairs. Thus, the company will be able to improve customer service, which is a goal set by the company CEO Elon Musk.