Tesla u-turns on store strategy, will keep half of showrooms open… and hike prices by 3%

TechCrunch | 3/11/2019 | Staff
hi09 (Posted by) Level 3
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It wouldn’t be Tesla if it didn’t keep us guessing a little… Electric car company Tesla announced that it is making a u-turn of sorts with its sales strategy. After saying at the end of February that it would close down nearly all of its 200-odd retail stores to sell its cars online-only in an effort to bring down the costs of vehicles, today Tesla announced that it would, in fact, keep an expanded number of showrooms open, reducing the closures to around half of the total number it has today.

In return, it will be hiking the prices of its pricier vehicles up by three percent to help support that. “Potential Tesla owners will have a week to place their order before prices rise, so current prices are valid until March 18th,” it noted, adding that the $35,000 Model 3 will not see a price increase. It will only apply to “the more expensive variants of Model 3, as well as Model S and X.”

Locations - Tesla - Cars

The locations that will stay open, it should be noted, will be only showrooms: Tesla said it will still only sell cars online.

“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” the company said in a statement late Sunday.

Company - Percent - Locations - Weeks - Stores

The company closed 10 percent of locations in recent weeks, selecting stores “that didn’t invite the natural foot traffic our stores have always been designed for.” Tesla said that those stores will remain closed, but a further selection of “high visibility” locations — it has a lot of stores in shopping malls and other places where it might pick up incidental traffic alongside those coming specifically with...
(Excerpt) Read more at: TechCrunch
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