Tesla Reverses Decision to Close All Retail Stores by Increasing Prices; Was Planning on Closing Physical Stores and Switching to Online Sales Model

CALIFORNIA – Tesla is hiking the cost of its more expensive vehicle models to retain about half of the physical stores the company had planned to close, according to a Sunday blog post.

The electric car manufacturer announced Feb. 28 that it was planning on closing almost all of its physical stores and switching to a purely online sales model, Business Insider reported. Tesla CEO Elon Musk has struggled to lead the company to consistent profitability. Since Tesla’s inception, the company has never posted positive earnings over a year.

“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” Tesla said in a statement. “As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about 3 percent on average worldwide.”

The hike will not affect Tesla’s base Model 3, which $35,000 price tag makes it the most affordable of Tesla’s lineup.


FREE DIGITAL SUBSCRIPTION: GET ONLY 'FEATURED' STORIES BY EMAIL

Big Tech is using a content filtering system for online censorship. Watch our short video about NewsGuard to learn how they control the narrative for the Lamestream Media and help keep you in the dark. NewsGuard works with Big-Tech to make it harder for you to find certain content they feel is 'missing context' or stories their editors deem "not in your best interest" - regardless of whether they are true and/or factually accurate. They also work with payment processors and ad-networks to cut off revenue streams to publications they rate poorly by their same bias standards. This should be criminal in America. You can bypass this third-world nonsense by signing up for featured stories by email and get the good stuff delivered right to your inbox.
 

The carmaker is continuing with its plan to expand its online sales. Physical stores will have a small selection for customers who want to test drive a car or drive one off the lot immediately.

Tesla has cut thousands of employees since the start of the year as the carmaker continues to overhaul its operations to hit profitability. Musk announced in January the company would cut 7 percent, or roughly 3,150 jobs, of its workforce.

The company has also bled dozens of top leadership over the past two years as Musk has ramped up production of the Model 3 in order to bring its price down to the $35,000 level.

In a separate issue, Musk must argue his case to the Securities and Exchange Commission (SEC) why he should not be held in contempt over past tweets announcing he planned to take the company private at $420 a share and had the funding to do it, Reuters reported. The tweets initiated an investigation into whether Musk sent the tweets to inflate Tesla’s stock price.

Musk and Tesla each paid a $20 million fine as part of a settlement agreement with the SEC and Musk agreed to step down as Tesla’s chairman.

Follow Tim Pearce on Twitter


Comment via Facebook

Corrections: If you are aware of an inaccuracy or would like to report a correction, we would like to know about it. Please consider sending an email to corrections@publishedreporter.com and cite any sources if available. Thank you. (Policy)