Elon Musk has said sales of the Model 3 electric car are essential to the California-based firm’s survival.
Tesla is set to close all of its stores in a cost-cutting measure so it can sell its Model 3 for a reduced starting price of $35,000 (£26,400).
The California-based firm’s cars will now only be available online.
Tesla’s chief executive officer Elon Musk has said sales of the Model 3, which had been priced at $42,900 (£32,369), are essential to the company’s survival.
Reflecting on the store closures, Mr Musk said: « It’s 2019. People want to buy online. »
The entrepreneur said he believes there is demand for 500,000 Model 3s per year, but conceded: « I don’t know what the demand is. »
He said he expects Tesla to lose money in the first quarter but is « likely » be profitable in the second.
