Tesla CEO Elon Musk said Thursday the company will be reducing headcount in sales, and closing most of its stores.
Instead, Tesla will sell its cars online only, and give drivers up to a week to return newly purchased electric vehicles if they aren't satisfied.
The moves allow Tesla to cut some costs, and relax its lobbying efforts in states that don't permit auto makers to operate their own dealerships.
"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," Musk said.
In a blog post Tesla emphasized that shifting sales to online only would enable it to sell its Model 3 vehicles for the long-awaited base model price of $35,000.