Tuesday, March 12, 2019

Tesla makes a U-turn on closing stores while Musk defends tweet before judge, a tale of the Retail Apocalypse

Kunstler quipped in Ides and Tides, "Pull the truck up to the loading dock and fill it with Tesla shares!"  That prompted me to respond "LOL, yeah, just as Tesla joins the Retail Apocalypse by closing its showrooms."  While I was typing that, Elon Musk and Tesla reversed the decision to close most of its retail showrooms and lower prices, making my comment look silly instead of snarky.  Yahoo Finance has the story in Tesla reverses decision to close all retail stores.

Rick Newman, Dan Roberts and Melody Hahm of Yahoo Finance discusses why Tesla is reversing the decision to close retail stores.
The point that Tesla was still on the hook for the rent on their leased showrooms is a good one.  If Tesla has to pay rent anyway, why not keep the locations open?  With that news, maybe I won't have to hurry to the Tesla showroom at Somerset Collection before it closes.  It probably will still be open.

Tesla making a U-turn on last week's decision to drive away from the Retail Apocalypse for now wasn't the only Tesla/Musk news today.  CNBC reported Elon Musk to defend his tweets to a judge.

Mark Lehmann, president at JMP Securities, joins "Squawk Box" to discuss Tesla CEO Elon Musk big week. Musk must respond to an order from a judge explaining why the court shouldn't hold him in contempt after he posted a tweet in February that some say may cost the CEO his title in the company.
It sounds like Musk really needs to learn when to keep his mouth shut, or at least not tweet.  I want him to continue his Crazy Eddie ways with Tesla and Space X but annoying the SEC would interfere with that.

Finally, I promised to revisit Radio Shack at the end of Charlotte Russe liquidating, a tale of the Retail Apocalypse.  Tomorrow.  The news about Tesla and Musk was too good to pass up.

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