Elon Musk says Tesla will raise prices and slow down store closures

Elon Musk says Tesla will raise prices and slow down store closures

So, to keep more stores open, Tesla will be raising its prices by an average 3%-though not the price of the cheapest Model 3.

The move also allowed Tesla to introduce its much-anticipated US$35,000 ($50,000) entry-level Model 3 variant.

In the first weekend of March, Tesla owners staged protests outside Tesla stores and Superchargers in some parts of Asia after the company had announced the massive price cuts, meaning that existing customers for some models in some counties have paid by up to 40 percent more for their Teslas before the price reduction.

Tesla will increase the cost of its vehicles by an average of about 3 per cent after rethinking a plan announced just 10 days earlier to wind down all but a small number of its stores.

Tesla has pulled a U-turn on plans to close nearly all of its dealerships while announcing price rises for its more expensive cars.

The company will also keep 20 percent of its stores under review for a few months, after which it'll either keep them open or close them.

Tesla is still sticking with its plan for all orders for its vehicles to take place online - even in its brick-and-mortar outlets. "Unfortunately, there's no way around it", said Tesla CEO Elon Musk in a conference call.

Before last week's closures, Tesla had 378 stores and service locations worldwide, including 23 outlets in the United Kingdom and Ireland, comprising 18 stores and five service centres. One of the stipulations of this settlement was for Tesla to oversee all of Musk's future tweets to ensure they had no impact on the vehicle manufacturer's stock price.

More news: Raiders to trade OG Kelechi Osemele to Jets

"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".

Last month, the electric-car maker announced it was shifting to online-only sales and closing most of its 378 retail stores.

Musk on February 19 tweeted to his more than 24 million Twitter followers that Tesla would make around 500,000 cars in 2019.

The store-closing reversal shows that Tesla had second thoughts about shuttering the stores and whether buyers would make such a large purchase without a test drive.

"Slightly more worrying, though, is Tesla's flip-flop on its store closures".

On balance, this seems like further evidence that Tesla's initial announcement wasn't really planned.

Tesla had said less than two weeks ago that it would begin shutting most of its stores in a cost-cutting move created to help reduce the price of its bestselling vehicle, the Model 3, to as low as $35,000.

Related Articles