Tesla Announces It Will Keep Some Of Its Stores Open, But Hike Prices On Higher-End Models

Tesla will also hike prices about 3 percent on higher-end models worldwide

[Photo: Tesla]

The company previously planned on shifting all its sales online.

Despite what the company said about closing stores at the end of February, it will continue to keep some open, according to a recent statement. The company said Sunday that it would close only half the number of stores it originally planned. On top of that, Tesla also said it would reopen some stores in high-visibility locations that originally closed, albeit with a smaller workforce.

That will give the company another outlet by which to sell its models, including the higher-volume Model 3. The $35,000 Standard Range variant just went on sale recently, and the company had planned to close stores as a means to boost profits on lower-margin sales, like the inexpensive Model 3. Tesla said the cost savings from closing all its stores only came out to about half the amount it expected, so it will only close half the number of stores compared to the original plan. The stores will also carry smaller inventories, for those customers who want to drive away immediately.

Tesla clarified in its statement that sales will still be conducted online, even if you go into a store. While there will be a small inventory of vehicles available immediately, customers still use their phones to buy one. Tesla also offers a 1,000 mile, 7-day return policy to let customers test drive the cars.

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The standard $35,000 Tesla Model 3 will not see a price hike. [Photo: Tesla]

A price hike is coming on higher-end models

Tesla will hike prices worldwide on its most expensive variants to make up the difference as well. That means cars like the Tesla Model 3 Dual Motor, Model S and Model X will get more expensive after next week. The standard $35,000 Model 3 will not get a price increase, as it’s now the standard bearer for the range. Potential buyers have until March 18 to lock in their new car at the old prices.

Tesla will raise prices 3 percent globally. That potentially means a $2,500 or so increase on the most expensive Model S.

Stay tuned to TFLcar.com for more updates!