Tesla says it is now taking orders for the long-awaited $35,000 Model 3, will close stores and move to online orders.
While plans to streamline the sales process in the United States "makes a lot of sense", Vinkhuyzen told DW, "In most of Europe, the Tesla brand is not known well enough to sell only by word of mouth".
Tesla has been pushing to cut the cost of the Model 3, trying to get the starting price for the compact auto down from the level of $49,000 when it debuted in 2017.
The base model of the Model 3 will have 220 miles of range, a top speed of 130 miles-per-hour and accelerate from 0 to 60 mph in 5.6 seconds, the company said.
There aren't many showrooms across the U.S. as Tesla is focused on catering to well-off communities but the company is closing some stores to reduce head count and ultimately, expenses.
Tesla no longer discloses the number of reservations, but many analysts believe those on the list are still waiting for this cheaper version.
Tesla's website showed on Thursday (9am Friday AEDT) that the electric vehicle maker will offer a $US35,000 ($A49,320) version of its Model 3.
The Tesla Model 3 first entered "production", if that's what you wanted to call it back then, nearly two years ago in 2017.
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But in Thursday's conference call, Mr Musk said Tesla doesn't expect to be profitable in the current quarter, though it hopes to resume profitability over the following three months.
Tesla said its sales change is essential to meet its price goal.
Rather than stores, Tesla could expand its network of "offline touchpoints to showcase their product", after all, electric cars still need a lot of education, Schmidt said.
"Cutting prices is more often a sign of weakness unless you are Amazon", he said. It's unclear at present how many stores will be kept - Tesla said only that they'd be the ones located at high-trafficked places - and how many job losses there will be.
Several traditional auto dealership chains have taken steps in recent years to pare back property holdings as vehicle buyers increasingly use smartphones and internet tools to shop for cars instead of visiting the dealership lot. The company delivered 145,610 Model 3s in 2018 at a previous $45,000 with 260 miles of range. The automaker now also offer full refunds if a auto is returned within a week or reaching 1,000 miles.
Tesla is also banking on the experience of briefly owning a Tesla - as opposed to a short test drive - to win over customers.
"People like to go to vehicle showrooms and kick the wheels and sit in the auto", he added.
"Quite literally, you could buy a Tesla, drive several hundred miles for a weekend road trip with friends and then return it for free", the company said.
Not long after Tesla was founded in 2003, Musk said the plan was to use money from high-end electric vehicles to create more affordable offerings to make the technology the new automotive norm.