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Tesla is raising prices after backtracking on store closures

12 March 2019
Environment
energynomics

Tesla will raise the price of its vehicles after going back on a recent decision to close most of its stores.

The electric car maker said in a statement late Sunday that prices for most models worldwide would go up by about 3% after it decided to “keep significantly more stores open than previously announced.”

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

As part of the plan, customers will instead have to buy Tesla vehicles online or by phone rather than in person at one of its hundreds of retail outlets.

The 3% price increases announced will apply to the more expensive editions of the Model 3, as well as the Model S sedan and Model X crossover. The higher prices will take effect on March 18.

Tesla has 378 stores and service centers worldwide.

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