Tesla changes tack: More stores to remain open, prices rise to compensate

Tesla changes tack: More stores to remain open, prices rise to compensate

The electric auto maker's efforts to improve its delivery processes was highlighted in the third quarter of 2018, at a time when Tesla was just getting the hang of producing the Model 3 at scale.

Tesla just took to its official blog to announce that it would not be closing as many stores as it had initially planned and would be raising prices 3% on select configurations of the Model 3, S, and X, effective March 18th.

Tesla had said less than two weeks ago that it would begin shutting most of its stores in a cost-cutting move created to help reduce the price of its bestselling vehicle, the Model 3, to as low as $35,000.

In a statement on its website late on Sunday (US time), Tesla said that after close evaluation of "every single Tesla retail location", it has chose to keep significantly more open than previously announced. Following that review, some more stores will close, and others will remain open, the company said.

To keep the lights on, Tesla notes that it will need to raise prices on all Models, with the exception of the low-margin Model 3's $35,000 Standard Range variant.

When CEO Elon Musk announced the debut of the base, $35,000 Model 3, he said it was only possible by achieving cost savings by closing stores and laying off their employees.

The global price hike will come into force on March 18, so if you've been considering splashing on a Tesla then you still have a week to make the most of current prices. "These are stores that we would have closed anyway, even if in-store sales made up our entire sales model", the company said. The plan is a partial reversal of the announcement that surprised investors and company fans alike.

According to Tesla's blog, the preference for conducting sales online will continue and said buyers in stores would be trained to order a Tesla on phone, which is a rapid process.

Recently, though, Tesla seems to be somewhat prone to waffling as opposed to sticking with a coherent game plan.

Remaining stores could have fewer workers but will have vehicles available for test drives and a small inventory in case people want to buy immediately, the statement said.

Tesla also announced Monday that it has purchased car-hauling trucks and trailers from a California company in a stock deal worth about $14.2 million.

Tesla's acquisition of Central Valley Transport's trucks will help the company optimize the delivery of its vehicles. Social media posts from Tesla workers show that even the company's executives were helping out in delivering Model 3s.

Tesla disclosed Monday in a government filing that it had shuttered 10 percent of its retail locations, but it is now reevaluating each of its stores.

Related Articles

  • Web inventor calls for 'fight' against hacking, hate on its 30th anniversary

    Web inventor calls for 'fight' against hacking, hate on its 30th anniversary

    These are deliberate, malicious intent , such as state-sponsored hacking and attacks, criminal behaviour, and online harassment. In the years that followed, Berners-Lee wrote the first HTML language, the HTTP application, and the first web browser.
    'Captain Marvel' rockets to historic $153M debut

    'Captain Marvel' rockets to historic $153M debut

    Not only is it the second largest opening for a superhero movie, but it also has the sixth best worldwide opening of all time. This image released by Disney-Marvel Studios shows Ben Mendelsohn, left, in a scene from Captain Marvel .
    Britain on storm alert with threat of widespread gales

    Britain on storm alert with threat of widespread gales

    Lasting from 6pm today until 6am on Tuesday, 25mm of rain is expected to accumulate as heavy brain rain turns to squally showers. There is a also a strong risk of flooding predicted in coastal areas according to Met Eireann .
  • 'I can't breathe': Serena Williams RETIRES from Indian Wells against Garbine Muguruza

    'I can't breathe': Serena Williams RETIRES from Indian Wells against Garbine Muguruza

    Williams was playing her first tournament since the Australian Open in late January, when she lost in the quarterfinals. Serena Williams receives medical attention after she retired in the second set of her match against Garbine Muguruza.
    Jayme Closs' kidnapper says he'll plead GUILTY in court

    Jayme Closs' kidnapper says he'll plead GUILTY in court

    Patterson had no other prior contact with Closs or her family before the night he busted down her front door and started shooting. Under a question of whether he's remorseful, he describes "huge amounts" of remorse and adds, "I can't believe I did this". ".
    Only Lok Sabha polls in Jammu and Kashmir

    Only Lok Sabha polls in Jammu and Kashmir

    Gearing up for the upcoming Lok Sabha elections , the Congress is taking a slew of steps to counter the BJP's sustained campaign. If any untoward incident or violation of any law/rule is noticed, action would be taken immediately, the commission said.
  • TV stars and coaches charged in college bribery scheme

    TV stars and coaches charged in college bribery scheme

    Just 18 percent of first-time, full-time undergraduates get into the University of Southern California , according to the U.S. He said he "controlled" an SAT testing site and could have a proctor "secretly correct her answers" after she took the test.
    Gophers get No. 7 seed in Big Ten basketball tournament

    Gophers get No. 7 seed in Big Ten basketball tournament

    Second chance opportunities kept Michigan State in the game in the first half and they helped put Michigan away in the second. Three different MSU players pulled down six or more boards, including a game-best 16 from fifth-year senior Kenny Goins .
    Akash-Shloka wedding: Antilia decked up with flowers

    Akash-Shloka wedding: Antilia decked up with flowers

    Akash Ambani and Shloka Mehta wedding celebration live updates: Akash Ambani and Shloka Mehta became man and wife on March 9. Almost the entire Bollywood fraternity, sportsman and politicians are expected to attend the high profile wedding.
  • Two in Custody for Murder of Girl Found in Duffel Bag

    Two in Custody for Murder of Girl Found in Duffel Bag

    Numerous children were victims of abuse or violence in their homes, and most died at the homes of parents or guardians. Trinity's body was found on a trail in Hacienda Heights in on March 5 by county maintenance workers.
    Parents of British tourist missing in Guatemala make emotional plea

    Parents of British tourist missing in Guatemala make emotional plea

    Calls to the family home, where Catherine's mother Anne and sister Jenny live, were referred to the Lucie Blackman Trust. But six days in this climate without water, it's unlikely that we're going to find her alive.
    WWE Rumors: Ronda Rousey To Give up? Final Look Date Revealed

    WWE Rumors: Ronda Rousey To Give up? Final Look Date Revealed

    We'll also see The Boss "n" Hug Connection defend the Women's Tag Team Titles for the first time against Nia Jax & Tamina. Bryan retained the belt after hitting Ali with a Running Knee in midair thanks to some help from his associate Rowan.