Tesla Will Raise Prices After Backstepping Store Closures

Tesla Will Raise Prices After Back-Stepping Store Closures

Business

Tesla announced in a blog post that the carmaker has reversed its step to close stores. Elon Musk, Tesla CEO, informed employees via an e-mail. According to the mail, the electric carmaker would transform its sales plan once again. The company aims to raise the prices of Tesla vehicles by 3% to keep its stores open. The new rates will be in effect from 18th March across the world. Although, the piece for Tesla’s Model 3 will remain unchanged. So it will cost $35,000 for the car. Whereas, there will be a rise in high-priced models like Model 3s, the Model S, and Model X.

The company offers potential buyers to buy the vehicle before 18th March, and pay the current rates. So customers can order or book an electric car at a low price until the upcoming week. The move arrived when the electric car maker faced disagreement for its decision. On 28th February, Tesla announced that it would be closing its stores and do online business. At that time, the company said shifting online will result in lower the vehicle price by 6%. Now the cost savings from store closing are about half from the anticipated amount. Tesla still aims to close half of the number of stores it planned to close.

There will be a few numbers of cars available for buying immediately. Still, the buying process will remain online. Associates at the Tesla store will guide the customers and help them to purchase using the mobile app. According to Tesla’s blog post, they have been closely estimating every Tesla retail location. As a result, they decided to keep particularly more stores open than previously announced. The post reads, Tesla will open a few stores that it closed already. But those stores will have fewer workers than before. Currently, the carmaker is reviewing some other locations. Depending on their effectiveness in the upcoming months, Tesla will decide, whether to continue or shut those stores.

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