Tesla makes dramatic U-turn on store closures

Ben StevensCompanies

Tesla has made a dramatic U-turn on its decision to close all of its physical stores, stating that it will now raise the price of some of its models in order to keep stores open.

In a blog post yesterday the electric car retailer revealed that it had changed its controversial plans, announced at the start of March, which would have seen it shutter its entire physical retail estate in order to keep the costs of its cars as low as possible.

Instead Tesla, headed by Elon Musk, will raise the price of the Model S, Model 3S and Model X by three per cent on March 18, allowing some if its physical estate to remain functional.

READ MORE: $8 billion wiped of Tesla’s value following shock announcement

However, its flagship baseline Model 3, Tesla’s attempt to bring its electric cars to the mass market, will keep its $35,000 price tag (£27,000).

It is understood that only around half of its stores will now close, and some high-visibility locations which had been closed due to poor performance will now reopen with less staff and less inventory available for customers who wish to drive away from dealership.

Despite half of its estate now remaining open, all sales will reportedly be done online, with in-store staff showing customers how to order on their phones.

“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” the blog post reads.

“Depending on their effectiveness over the next few months, some will be closed and some will remain open.”

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Ben StevensCompanies

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