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Tesla to Raise Prices and Reduce Store Closures in New Strategy Switch | Fortune

Tesla has done a partial U-turn on a retail-strategy shift—unveiled less than two weeks ago—that was to involve the closure of most of its stores, in a bid to go “online only.”

In a blog post late Sunday, Elon Musk’s electric-car outfit said it had decided to keep “significantly more” stores open than planned, and will even reopen “a few stores in high visibility locations that were closed due to low throughput…but with a smaller Tesla crew.” Overall, it will only be shuttering half as many stores as it was going to.

The closure of all but a few Tesla showrooms was supposed to be a cost-cutting measure, largely to allow the company to achieve its long-promised pricing of $35,000 for the base-specification Model 3.

So, to keep more stores open, Tesla will be raising its prices by an average 3%—though not the price of the cheapest Model 3.

“In other words, we will only close about half as many stores, but the cost savings are therefore only about half,” the post read.

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Tesla to Raise Prices and Reduce Store Closures in New Strategy Switch | Fortune.

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