Tesla removes quarterly bonuses from its sellers, no more waves?

In most dealerships around the world, salespeople receive part of their salary in sales bonuses. This strategy is followed throughout the sales industry. A way to incentivize retailers to improve their market share. as collected Electrek, Tesla appears to be cutting bonuses from its retailers. To make up for the loss, he has increased the salary of many of his salespeople, something that may not satisfy many salespeople.

For a long time, Tesla and Elon Musk have followed a typical sell-and-compensate strategy. Each seller receives a certain bonus for the purchase of a car. At the end of the quarter, with the figures on the table, the commercial receives compensation for his work, determined, as we have already said, in the number of sales made during those three months. In Tesla you could choose between metallic money or options on shares of the company itself.

However, as of 2019, Tesla’s business approach has been gradually changing. By then, Elon Musk announced a radical transformation of his commercial and retail network. The intention of the American businessman was to close most of the points of sale in order to make a transition to online sales. With this strategy he would be able to reduce expenses in bonuses, facilities and also personnel. Despite this strict measure, over time most of the actions were reversed.

A Tesla Model Y in a Tesla store.

Although many points have disappeared, the reality is that in countries like the United States the number of dealers has increased. Tesla’s retail presence has grown throughout the world. Increased sales volume has caused Tesla to spend a lot of money on quarterly bonuses, so the tough decision has been made to eliminate them. To compensate for the loss, vendors and workers at the points of sale have received a salary increase valued at 12.5%, half of what they could receive as quarterly compensation for their work.

Although the measure may not satisfy some commercials, this maneuver reduces the tension to reach the demanding quarterly figures of Tesla. Late last year, Elon Musk encouraged commercials not to focus so much on the famous end-of-quarter wave deliveries. Although the pressure is reduced, so are the salaries of salespeople. A 12.5% ​​compensation may not satisfy many salespeople considering the excellent volume of work they have on their hands. Before this adjustment, employees could get a bonus of up to 25% of their salary if they met the quotas.

Tesla wants to be more regular in its deliveries. With the commissioning of the new Gigafactories in Austin and Berlin, production and supply to dealers should be much more regular That so far. That constant flow of cars will make calendars much more comfortable for sellers. This effect is expected to be magnified in the second half of the year, when the new plants start to operate more regularly.

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