Tesla to rollback local price cuts

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Price increase will not affect the $35,000 Model 3, the company added. But as The Wall Street Journal noted, Tesla's sudden store closing plans were likely to face legal challenges from landlords (a good number of Tesla stores are located in malls).

After spending the last two weeks evaluating every single Tesla location, the company has chose to keep more stores open.

The step backwards will come as a hit to customers as well, as Tesla will raise prices 3% on all S and X vehicles as well as all of the Model 3 configurations other than the $35,000 configuration to account for the remaining stores. A few stores in high visibility locations will be reopened with smaller crews.

On February 19, he tweeted that Tesla would make 500,000 cars in 2019 - up from the 400,000 that the company had estimated until then, as it grapples with production problems with the Model 3.

Elon Musk is backtracking from a jarring change in Tesla Inc.'s retailing strategy, keeping numerous company's stores open and raising the prices of its electric cars as a result. "We will only close about half as many stores, but the cost savings are therefore only about half".

Buyers with existing reservations have a week to place their orders before the new price increases take effect.

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"There will be a pause on store closing and my suspicion is that the performance of the Vancouver stores are above average for Tesla sales and they may all stay open", he said.

In its blog post, Tesla said it's sticking to plans for all sales to be done online, with more thinly staffed stores playing the role of coaching consumers on how to order cars on their phones.

Analysts say the company's sudden reversal of plans adds to investor concerns that it lacks a cohesive strategy for growing into a major global automaker.

Tesla's PR notes that all vehicles sales will still be conducted online, though it also states that a small number of vehicles will be on-hand for immediate purchase. Social media posts from Tesla workers show that even the company's executives were helping out in delivering Model 3s.

The price cut announced by Tesla previously was categorised as "around 6%".

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 auto before they actually buy one. Tesla wants to increase its vehicle transportation capacity and cut delivery times. It's unclear how that applies to the company's local Australian operations, about which Tesla Australia will not comment.

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