The company has 378 stores and service locations worldwide.
The BBC reported that Tesla had suggested closure of its physical stores would realise cost savings of around 5%, however Musk declined to say how many stores would close, or how many people will lose their jobs as a result of the changes. Tesla stores will be "more like galleries and information centers", Musk explained.
Tesla is shutting down all of its retail sales operations, so if you want to buy its cars, you'll now have to do it online.
Tesla opened the 100 Lake Destiny Drive dealership in 2015 after relocating from a smaller facility in Longwood.
The company closed its order books this morning, before reopening them with the Model 3 Standard Range and Standard Range Plus added.
For existing Tesla customers, maintenance would shift to mobile fix crews.
- The long-awaited $35,000 version of the Tesla Model 3 is finally rolling out in the United States. "There's no other way for us to achieve the savings required to provide this vehicle and be financially sustainable". Once there is greater infrastructure for electric vehicles, other customers will feel comfortable buying them, knowing that the infrastructure, like charging stations, is there to support their investment.More news: Binyamin Netanyahu shaken by corruption charges weeks from Israeli poll
Musk initially wrote that Tesla would produce 500,000 vehicles in 2019, a bold prediction given that the company only made 350,000 a year ago.
Tesla's stock fell 3 percent in extended trading after the news came out.
Coinciding with the Model 3 Standard Range reveal, Musk also announced that Tesla is shifting to online sales only. But customers who reserved the Model 3 at that lower price have waited almost three years since Musk first promised it. Some people are scoffing, "Who will buy a vehicle without a test drive?"
Tesla said customers who were not satisfied with an online purchase could choose to return a vehicle within 7 days or 1,000 miles for a full refund.
A $35,000 Model 3 is a major shot in the arm for Tesla sales during a period of major challenges, including deliveries of the Model 3 to Europe and China and construction of a factory in Shanghai. And while TSLA noted that these new models will be lower in cost, it appears this may be more a function of reduced battery size and range, rather than any other major cost efficiencies... Shares of Tesla popped in anticipation of the announcement, closing higher by 5.67% on Wednesday and 1.63% as of market close Thursday. Instead of a test drive you can try the auto for a week after purchasing it and return the vehicle if you don't want it. Musk said you would be able to buy a Tesla on your phone in one minute. We are also making it much easier to try out and return a Tesla, so that a test drive prior to purchase isn't needed.