Published: Mon, March 11, 2019
Business | By Eloise Houston

Tesla says it'll keep more stores open and raise vehicle prices

Tesla says it'll keep more stores open and raise vehicle prices

Earlier this month Tesla said it would close an unspecified number of stores to fund a cut in the price of the Model 3 in the U.S. to $35,000 (£26,400).

Now, however, the company has backtracked, saying in a blog post that it has taken a close look at each of its stores and realized it makes more sense to keep majority open. But that wasn't the only surprise.

Musk on February 19 tweeted to his more than 24 million Twitter followers that Tesla would make around 500,000 cars in 2019.

This decision means that global prices will need to rise.

Tesla says the move will allow it to keep open more of its Tesla stores than previously planned. "In other words, we will only close about half as many stores, but the cost savings are therefore only about half".

Anyone who was considering buying a in the near future has only one week to lock in the current pricing. Additionally, it is reported that the Model Y will share approximately 75 per cent of its parts with the Model 3 and will likely be offered with the same powertrain configurations as its sedan sibling.

The price rises, which will come into effect on 18 March, will add around £2160 to the £72,000 starting price of a Model S, and £2400 to the cheapest Model X SUV, now £80,200.

"To be clear, all sales worldwide will still be done online, in that potential Tesla owners coming in to stores will simply be shown how to order a Tesla on their phone in a few minutes", it noted.

And despite test drives being one of the biggest draw cards of the stores, the company is confident that its "1000 miles or 7 days" return policy will negate customers' need to try a very expensive vehicle before they actually buy one.

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