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Tesla will close all of its retail stores and move to selling vehicles only online, reports The Wall Street Journal.

Tesla has made this decision to cut costs so that it can offer its Model 3 compact at a starting price of $35,000.

According to founder of Space X and Tesla Ilon Musk, the closure of the retail stores will help the company become “a very strong competitor”.

“This will be Tesla’s long-term competitive advantage that only a startup can have,” Musk said.

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