Tesla price hike imminent: What to know

By TeslaFOXBusiness

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Some Tesla cars are about to get a bit more expensive.

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CEO Elon Musk reminded customers last week that an average 3 percent price hike on inventory cars would be effective as of midnight on April 1.

This increase will be made in order to bring inventory prices in line with another recent price increase on newly ordered vehicles.

As detailed in a March blog post, the company said it would institute an average 3 percent global price increase affecting Model S, Model X and higher-end Model 3 orders. The newly announced lower-priced Model 3 – with a base price of $35,000 – was not subject to increases, which went into effect late last month.

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The price hikes were the result of the company's decision to reverse a cost-cutting plan to shutter most of its store locations: Tesla initially announced an effort last month to wind down its retail sales as it transitioned to online-only transactions.

“As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about 3 percent on average worldwide,” the company said in a blog post. “In other words, we will only close about half as many stores, but the cost savings are therefore only about half.”

The company said 20 percent of stores will be under review throughout the coming months.

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Last month, Musk unveiled a new crossover SUV – the Model Y – at an event in California. The vehicle has a battery range of 300 miles. Deliveries won’t begin until late 2020 for higher-end variants, which bear price points of $47,000, $51,000 and $60,000. A lower-cost, standard version will be available in the spring of the following year.