Economy

Tesla decides to keep more stores open and raise prices instead

Tesla decides to keep more stores open and raise prices instead

The company has now published a blog post which backflipped on this decision.

When Tesla chief executive Elon Musk first announced that the Model Y would be unveiled on March 14, he said that it will be roughly 10 per cent larger than the Model 3 sedan and cost about 10 per cent more.

Instead, around half of the stores the carmaker planned to close will remain open and it'll increase prices on its higher-end Model 3, Model S and Model X "by about 3 percent on average worldwide", it said in a release. However, "a few stores in high visibility locations" will be reopened.

Purchases will still be done online, with Tesla store sales associates showing prospects how to purchase using the mobile app. Tesla adds that the seven day/1,000 mile return policy should eliminate the need for test drives in most cases, but "cars will still be available for test drives at stores at the potential Tesla owner's request". As a result, the company will increase auto prices by about 3% on average, globally.

More news: Philadelphia says no to totally cashless future

Furthermore, another 20% of locations are under review; depending on how they perform "over the next few months", some will be shut down.

Tesla Inc Chief Executive Elon Musk has until the end of the day on Monday to explain why he should not be held in contempt for recent tweets that US securities regulators say violated a September fraud settlement.

The carmaker said the 3% price rise would not apply to the new mid-market Model 3.

While the auto price increase certainly isn't something potential buyers will be happy about, Tesla says they'll have a week to place their order before prices rise. Tesla says that stores will cary a "small number" of cars in inventory so that some buyers can drive away in a Tesla right away.


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