Tesla turns around raising prices, keeping more stores open

By AutoFOXBusiness

Tesla looks to cut costs with layoffs and shift to online sales

FBN’s Charlie Gasparino discusses Tesla CEO Elon Musk’s Model 3 announcement and the company’s cash problem.

What a difference two weeks makes in Tesla news.

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The electric carmaker reversed course on Sunday, saying it will now raise the price on its high-end vehicles, after saying last month that it was closing retail stores and switching to an online sales model.

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That move was supposed to help lower prices by about 6 percent on average, instead Tesla will raise prices by about 3 percent on average and it will keep more of its retail stores open, according to the company.

In  statement, the company said that 10 percent of sales locations were closed in areas where they didn’t invite the natural foot traffic they were designed for.

The price hikes will apply to the more expensive variants of Model 3, Model S and Model X, but no price increase to the $35,000 Model 3. The old prices will still be available until March 18.

The carmaker said a few stores in high-visibility locations that were closed due to low throughput will be reopened with a smaller Tesla crew.

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Tesla said the stores will carry fewer cars in inventory which could delay customers from driving away with their vehicle quickly.