Tesla walks back its plan to close most showrooms

Andrew Cummings
March 12, 2019

American electric vehicle maker Tesla has raised auto prices by an average 3 percent, worldwide.

The latest announcement reverses those price cuts and most of the store closings.

Fox News senior judicial analyst Judge Andrew Napolitano on Tesla CEO Elon Musk's Twitter fight in court and the legalization of marijuana in states across the country. "Reduce headcount and sell the $35,000 vehicle and have fewer people, or not provide a $35,000 auto".

But Tesla says it has been evaluating that decision over the last two weeks and has decided it would be beneficial to keep some physical stores open.

With that increase, the base price of the Mid Range Model 3 would rise $1,200 to $42,400 (all prices assuming the mandatory $1,200 destination and documents fee remains the same), for example, and the Long Range Dual Motor all-wheel drive Model 3 would rise from $48,200 to $49,610.

Tesla plans to raise average vehicle prices by about 3 per cent globally after it reversed a decision to shut down most of its stores.

Tesla also chose to retain some of the physical stores it had planned to close and will reopen some of the closed retail centers.

Tesla was expected to further reduce the price of Model S and Model X after realizing a 5-6% cost reduction from its transition to online-only sales.

Tesla spokeswoman Emily Findlay also said there is nothing more to add beyond what the blog post had mentioned. Instead, they visit to see sales models and take test drives, before finishing the deed online.Tesla's one New York City showroom is in Manhattan's Meatpacking District at 860 Washington Street.

Tesla opted to close the "stores that didn't invite the natural foot traffic our stores have always been designed for". Even if selling through stores were our only means of sales, we would still have closed them down. Some of the stores that have already closed will be reopened with fewer staff members. Another 20 percent of stores are still under review and may close over the coming months, depending on their effectiveness.

In a statement on Sunday, the auto maker said potential buyers can place orders until March 18 at the old prices. There will be no price increase to the US$35,000 Model 3.

As a result, the range-topping Model S P100D, which had a United Kingdom price of £131,305, will become the Ludicrous Performance and cost just £83,300 - a monumental saving of £48,005.

On February 28, Tesla said that the long-awaited US$35,000 Model 3 was now available, but in order to "remain financially sustainable", the EV maker was shifting sales worldwide to online sales only, meaning it would be closing down stores.

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