Tesla delays 3% price hikes

Tesla has announced that the upcoming three per cent price hike on all of its models bar the Model 3 will be delayed.

Due to an influx of last-minute orders, Tesla announced via Twitter yesterday that the upcoming price hikes will be delayed until midnight tonight, meaning users can still purchase cars at a lower price.

This follows a turbulent few weeks for the electric car maker, which announced in late February that it would shutter all of its physical retail stores and go solely online.

The move was designed to allow the company to lower the price of all of its models by six per cent, and cut operating costs so its recently launched standard-model Model 3 could be sold for $35,000 (£27,000).

Following a backlash from both customers and investors, seeing around $8 billion wiped off the value of the company, Tesla partially reversed this decision earlier this month.

It announced on March 11 that it would 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: Tesla makes dramatic U-turn on store closures

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.

Since the decision Tesla’s founder Elon Musk has taken to Twitter to encourage customers to place orders before the price hikes came into effect.

Tesla added that the price would not apply to Tesla’s recently launched Model Y SUV, which will launch in 2020 for $47,000.

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