Tesla is shutting down stores to build a cheaper Model 3. What's the story here?
Of course, Bloomberg Technology and most of mainstream media has voiced the fact that it's once again unhappy with Tesla. "Build the base Tesla Model 3 quickly or we'll destroy your credibility. Wait, don't build it if you have to adjust finances. You must show a profit even if it means building less cars. Wait, if you build less cars we're coming to get you!"
Yes, as most of you know, the mainstream press related to Tesla is just about 100-percent negative. In fact, the company is under so much scrutiny that there's absolutely nothing it can do (most of which is one every day by legacy OEMs, but goes unnoticed and unreported) to prove success to the media.
Industry expert Sandy Munro tore down a Model 3 early on and seemed disgusted. Since then, he's changed his tune so much that he even appears to be a Tesla supporter. However, in a recent interview with Bloomberg regarding Tesla's plans for store closures and potential job cuts, he calls Tesla a cult.
Whether or not Munro is enamored with the Model 3 from a design standpoint, he's may not be so sure about the company as a whole. In fact, he says Tesla is not even an automaker, but instead, a cult. As Bloomberg sees it, this is an outright negative.
However, the truth is, Munro sees that the electric automaker can sell its cars without having stores, since Tesla and Elon Musk simply attract people in a way that no other automaker has achieved. No other company CEO is so well-known. No automaker has secrets and tricks up its sleeves like that of Tesla. Munro is so impressed to say that most people won't even settle for a $35,000 Model 3 because Tesla offers so many appealing option and add-ons.
Still, while a cult is great for marketing, it can always backfire. For this reason, it can work to make investors and car shoppers uneasy, which is clearly the case in the present.
We'd love to read your thoughts on this phenomenon in the comment section below.
Video Description via Bloomberg Technology on YouTube:
Sandy Munro Says Tesla Isn't a Car Company, It's a Cult
Mar.01 -- Sandy Munro, chief executive officer of Munro & Associates, and Bloomberg Businessweek's Max Chafkin discuss investor reaction to Tesla Inc.'s plan to shut many of its stores to help deliver a new Model 3 for $35,000. They speak with Bloomberg's Emily Chang on "Bloomberg Technology."