Tesla hikes vehicle prices as it scales back drastic store closure plan
Tesla will raise the prices of its high-end vehicles by roughly three per cent as it scales back a controversial plan to close most of its stores.
The electric car manufacturer said the price hike will apply to the more expensive variants of the Model 3, as well as Model S and X, but not to its $35,000 (£27,000) Model 3.
Read more: Tesla shares slide as Musk unveils store closure plans
Potential buyers will have until 18 March to place their order before the prices increase, the company said.
Tesla also said it will scale back its plan to close the majority of its stores in a bid to cut prices. The planned closures, announced earlier this month, sparked jitters among investors and led to a slip in Tesla’s share price.
But in a blog post last night Tesla said it will only close about half as many stores as originally planned. As a result, the cost savings will only be roughly half the expected amount.
Tesla said a few stores that had been closed will be reopened with a smaller staff. In addition, roughly 20 per cent of the company’s brick-and-mortar locations are under review and a decision will be made in the coming months.
Read more: Regulator accuses Elon Musk of misleading investors with new Tesla tweet
Tesla, which was founded by outspoken billionaire Elon Musk, said all its sales will continue to be carried out online.
Its physical stores will be there simply to show potential buyers how to order a Tesla on their phones, with a small number of cars available for those who wish to drive away with a Tesla immediately.