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On March 8th it was reported they wouldn't be able to exit many of their store leases. https://www.wsj.com/articles/landlords-to-tesla-youre-still-on-the-hook-

On March 8th it was reported they wouldn't be able to exit many of their store leases. https://www.wsj.com/articles/landlords-to-tesla-youre-still-on-the-hook-for-your-store-leases-11552059041 https://www.wsj.com/articles/landlords-to-tesla-youre-still-...

deleted 8y ago
[deleted]
g10r 8y ago
Surely they understood this before the initial decision was announced. No way those leases were disappearing.
- coderholic 8y ago
  I wonder if it was a clever negotiating tactic? Scare the landlords, then walk it back and get a great deal. Even if it was that, seems risky to want to do it knowing it's going to make you look more broadly.
  - g10r 8y ago
    Tesla occupancy doesn't mean much for most of these malls/shopping centers, to be honest. Apple/Nike/Target, sure. Tesla, no.
  - pretendscholar 8y ago
    They already signed the terms of the lease.
  - xkjkls 8y ago
    Their landlords are a large number of different entities each with their own areas and laws. This is not an effective way to negotiate with 100s of malls around the country.
  - gamblor956 8y ago
    Scare the landlords, then walk it back and get a great deal. This is how the conversation with the landlord would probably go: Tesla: We're going to close our store in your mall. Landlord: Good luck with that. Next month's rent is due in a week. Tesla: But we're closing our store... Landlord: You signed a multi-year lease without an early cancellation clause. I don't care if you're closing the store, you still owe me rent for the remainder of the lease. You can pay it as due or buy out your for X% of the aggregate remaining amount. [where X is some obscenely large percentage approaching 100% because the landlord has Tesla over a barrel and doesn't need to offer a discount].
- tivert 8y ago
  > Surely they understood this before the initial decision was announced. No way those leases were disappearing. Given the flip-flopping, I'm unsure how much we can assume they understand.

deleted 8y ago

[deleted]

g10r 8y ago

Surely they understood this before the initial decision was announced. No way those leases were disappearing.

coderholic 8y ago
I wonder if it was a clever negotiating tactic? Scare the landlords, then walk it back and get a great deal. Even if it was that, seems risky to want to do it knowing it's going to make you look more broadly.
- g10r 8y ago
  Tesla occupancy doesn't mean much for most of these malls/shopping centers, to be honest. Apple/Nike/Target, sure. Tesla, no.
- pretendscholar 8y ago
  They already signed the terms of the lease.
- xkjkls 8y ago
  Their landlords are a large number of different entities each with their own areas and laws. This is not an effective way to negotiate with 100s of malls around the country.
- gamblor956 8y ago
  Scare the landlords, then walk it back and get a great deal. This is how the conversation with the landlord would probably go: Tesla: We're going to close our store in your mall. Landlord: Good luck with that. Next month's rent is due in a week. Tesla: But we're closing our store... Landlord: You signed a multi-year lease without an early cancellation clause. I don't care if you're closing the store, you still owe me rent for the remainder of the lease. You can pay it as due or buy out your for X% of the aggregate remaining amount. [where X is some obscenely large percentage approaching 100% because the landlord has Tesla over a barrel and doesn't need to offer a discount].
tivert 8y ago
> Surely they understood this before the initial decision was announced. No way those leases were disappearing. Given the flip-flopping, I'm unsure how much we can assume they understand.