Tesla says it'll keep more stores open and raise auto prices

Tesla hits brakes on retail store closures, will raise prices instead

The renewed public battle between Tesla's CEO and the SEC adds pressure on Musk, the public face of the electric vehicle-maker who is struggling to make it profitable after cutting the price of its Model 3 sedan to $35,000.

The price rises, which will come into effect on 18 March, will add around £2160 to the £72,000 starting price of a Model S, and £2400 to the cheapest Model X SUV, now £80,200.

The company has now published a blog post which backflipped on this decision. The Model 3 has not yet gone on sale in the United Kingdom, so final pricing has yet to be decided.

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.

It will now close "about half as many" stores - making half the cost savings.

"A few stores in high visibility locations that were closed due to low throughput will be reopened, but with a smaller Tesla crew", the company said".

Tesla didn't immediately respond to a request for further comment.

Despite keeping more stores open, Tesla will still use an online only sales model worldwide, with all auto sold with a seven-day or 1000-mile return policy.

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

Despite this quick direction change, Tesla maintains that worldwide sales will be moving to an online model. And the generous return policy of 1000 miles or 7 days, whichever comes first, should alleviate the need for most test drives.

Related:

Comments


Other news