Tesla says it'll keep more stores open and raise vehicle prices
Tesla says it'll keep more stores open and raise vehicle prices
Tesla will raise prices and backtrack on closing most of its stores
11 March, 2019, 17:54
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.
While the teaser itself doesn't reveal a whole lot about the Model Y, it does show that its headlights will more closely resemble those of the Model 3 than the larger Model S sedan and Model X SUV.
Musk, 47, described the store wind-down announced on February 28 as a cost-cutting move that enabled Tesla to offer a long-promised $35,000 version of the Model 3 sedan, the automaker's first mass-market vehicle. It said it will now "only close about half as many stores" as previously planned.
In brief: Tesla has backtracked on plans to close virtually all its stores following a move to an online-only sales model.
The company stated that it has evaluated all of its stores over the past two weeks and has chose to keep "significantly more" stores open than originally anticipated. A few stores in high-visibility locations that were closed because of low throughput would be reopened with a smaller Tesla crew and would carry fewer cars in inventory.
That's good news for most of Tesla's sales staff, but not for new customers, who will pay the price for keeping the stores open.
Tesla has done a partial U-turn on a retail-strategy shift-unveiled less than two weeks ago-that was to involve the closure of most of its stores, in a bid to go "online only".
The company noted that it already shuttered 10 percent of sales locations that weren't generating sufficient foot traffic, and those will remain closed.
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However, the long-promised $US35,000 Model 3 will not be impacted by the increase.
Elon Musk is backtracking from a jarring change in Tesla Inc.'s retailing strategy, keeping numerous company's stores open and raising the prices of its electric cars as a result. Although Tesla said it would concentrate on making up volume in Europe and China, neither of those markets appear able to take up the US' slack.
According to Tesla's blog, the preference for conducting sales online will continue and said buyers in stores would be trained to order a Tesla on phone, which is a rapid process.
The company gave no numbers, but said it would close only about half the stores that it had meant to.
Tesla has 378 stores and service centers worldwide. And the generous return policy of 1000 miles or 7 days, whichever comes first, should alleviate the need for most test drives.
Shares of Tesla edged up less than 1 per cent in trading early Monday.
Tesla's share price rose nearly 3% in early German trading, following the publication of the blog post. The vehicle firm is backtracking on its plans to close most of its stores worldwide after a period of evaluation.
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