Tesla Halts Store Closures And Raises Prices

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It was only a few weeks ago that Tesla had announced they would be closing all their store locations and moving to an online-only sales strategy. Today the company announced they're putting the brakes on that plan. Instead, they are raising prices to offset store costs.

When the announcement was first made the Tesla stores were closing many in the community were surprised and upset with the decision. Future customers would no longer be able to go for a test drive in the cars at the store locations. And purchasing vehicles could only be done online which could be an issue for some. Along with the changes for customers employees at those locations were affected as their wages were cut and compensation was ended for sales made.

Tesla is now planning on keeping those stores open for the time being, but still moving forward with their online-only sales strategy. This means if you go into a store to buy a car, the employees will help you use your smartphone to purchase the vehicle. There will also be a small selection of vehicles kept in stock for those interested in buying a car on the same day. Test drives will also be available at these locations.

The downside of all of this is Tesla has announced they are raising their vehicle pricing by 3% to offset the additional costs necessary to keep the stores open. This new 3% price increase will go into effect on March 18th. Also, the price increase won't affect the recently announced $35,000 Model 3 which will keep its low-end pricing.

It's unclear how long Tesla will keep these stores open for. The company still plans on moving to an online-only sales strategy and the store may close more gradually than initially planned.

Tesla also plans on unveiling its new Model Y vehicle this week on March 14th.

Source: Tesla

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