American electric vehicle maker Tesla will shut down its physical stores in China in accordance with its global strategy of shifting sales online, People’s Daily-affiliated International Financial News reported Thursday, citing an unnamed corporate source.
Tesla operates dozens of stores in China. Two in Shanghai will be the first to be shuttered. The company will no longer pay commission to its sales force in the second quarter of 2019, but will retain the basic salaries for its sales representatives in the country.
Currently, Chinese buyers can order Tesla vehicles via the company’s website. Payment options include Alipay.