Tesla to raise vehicle prices, keep more stores open
Tesla to raise vehicle prices, keep more stores open
Tesla will raise prices and backtrack on closing most of its stores
11 March, 2019, 13:59
However, amid recent store closures and related staffing cuts, Tesla announced on Monday that it has chose to reopen some stores that are in high visibility areas. The company said that the 10% of stores it had recently closed weren't performing and would've been closed anyway. The stock has slumped since then, closing at $284.14 on Friday, after Chief Executive Officer Elon Musk slashed the prices of Tesla cars and announced the company will close nearly all its stores.
Tesla says the move will allow it to keep open more of its Tesla stores than previously planned.
What a difference two weeks makes in Tesla news.
"In addition, there are another 20% of locations that are under review, and depending on their effectiveness over the next few months, some will be closed and some will remain open". Musk did not specify how many stores would close, or how many jobs would be lost as a result.
The carmaker said potential buyers can place orders until March 18 at the old prices. As a result, the company will increase vehicle prices by about 3% on average, globally.
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.
Tesla said the worldwide price hikes will apply to the more expensive variants of Model 3, Model S and Model X, and there will be no price increase to the $35,000 (£26,975) Model 3.
Fortunately, test drives will still be available by request and stores will have a few cars on hand for anyone who decides they need to buy one on the spot.
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