"Tesla Must Give Driver-Assist Demonstration With Every U.S. Sale; New Requirement Will Slow Delivery Process, Musk Says In Memo; Full Self-Driving, Other Features Have Generated Controversy" - Bloomberg News
Portfolio Pulse from Benzinga Newsdesk
Tesla Inc. has implemented a new policy requiring staff to install and demonstrate its driver-assistance technology, including Full Self-Driving, to customers before finalizing sales in North America. This directive, outlined in an internal memo by CEO Elon Musk, aims to ensure customers are familiar with the technology but is expected to slow down the delivery process.
March 25, 2024 | 7:35 pm
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Tesla's new requirement for staff to demonstrate driver-assistance technology to customers before sales could potentially slow down the delivery process, impacting the company's sales volume and possibly its stock price in the short term.
The implementation of a mandatory demonstration of Tesla's driver-assistance technology, including Full Self-Driving, before finalizing sales introduces a new step in the sales process. This requirement, as stated by CEO Elon Musk, is expected to slow down the delivery process. Given that delivery speed is a key factor in sales volume and customer satisfaction, this policy could lead to a short-term decrease in sales volume. A decrease in sales volume, in turn, could negatively impact Tesla's stock price in the short term as investors react to potential delays in revenue generation.
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