Tesla, the electric vehicle manufacturer, is poised to open a storefront in Masonville Place as it also builds a service garage on Wonderland Road.

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Mall shopping this holiday season just got a little flashier.

Tesla, the electric vehicle manufacturer, is poised to open a storefront in CF Masonville Place as the automaker brings its innovative retail model to London, selling cars from a mall store as a direct pitch to consumers.

“We are excited to share that this is a multi-year agreement, a 2,600 square feet (242 square metre) showroom with three vehicles inside, scheduled to open the first week in December,” Sandra Lorentiu, general manager of CF Masonville Place, said Tuesday.

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Tesla will also have six vehicles parked outside for test drives, she said.

In addition, Tesla is building a more than 50,000 square feet (4,645 square metre) service facility at Wonderland Road and Bradley Avenue, approved by the city in September 2023. That site will include a showroom, service and vehicle delivery centre and a large parking lot.

The mall storefront experience is a unique Tesla sales strategy, said Darryn John, founder of the website Drive Tesla Canada that reports on Tesla and EV news.

“Tesla does not do it like other car makers, it made a commitment to storefronts in malls. They have other mall locations across Canada for the exposure, for the foot traffic,” John said.

“Its purpose will be mostly to service and deliver cars. Masonville will be a showroom, it will be for display and maybe test drives,” he said.

Officials with Cadillac Fairview, owner of CF Masonville Place, and Tesla could not be reached for comment. 

Tesla’s strategy to sell cars in mall showrooms has attracted much attention from the marketing industry and is seen as an effective way to pitch directly to drivers.

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“Tesla uses direct sales, unlike other automakers who sell through franchised dealerships. A global network of company-owned showrooms and galleries has been established, most of which are located in well-known urban areas,” the industry website Simplilearn says.

Tesla does not sell franchises. The company builds and manages its sales and service centres. 

“This approach allows Tesla to have a closer relationship with their customers, providing a personalized buying experience,” the site findyouraudience says.

“Tesla strategically places retail outlets and galleries in high-traffic areas like shopping malls to maximize brand exposure and allows potential customers to interact with its products firsthand.”

Tesla announced in 2021 it was going to move away from the mall retail strategy because it was too costly, but the company changed its position and has since added mall locations, John said.

In fact the company is also planning a mall showroom at CF Lime Ridge Mall in Hamilton, he said. Tesla also has a facility in Waterloo.

“Tesla’s decision to bypass traditional car dealerships has allowed the company to reimagine the car buying process. By selling their vehicles  online or through company-owned stores Tesla can ensure a consistent brand experience and maintain direct contact with their customers,” findyouraudience says. 

The opening comes as Tesla’s sales decline this year compared with 2023. Tesla sold more than 1.8 million cars in 2023, and in the first three quarters of 2024 sold about 1.3 million.

Tesla’s revenue in 2023 was $96.77 billion US. In the first nine months of 2024, Tesla’s revenue was $71.98 billion US.  

ndebono@postmedia.com

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