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by g10r 2658 days ago
Surely they understood this before the initial decision was announced. No way those leases were disappearing.
2 comments

> 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.

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.

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].

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.
Tesla occupancy doesn't mean much for most of these malls/shopping centers, to be honest.

Apple/Nike/Target, sure. Tesla, no.

They already signed the terms of the lease.