Tesla reverses out of showroom closures

Tesla reverses out of showroom closures

In a February 28 blog post on the Tesla website, it was stated that the electric-automaker would close most of its 378 stores worldwide. There will be no price increase to the $35,000 Model 3. Tesla on Monday announced an average 3 percent hike in prices for its cars and reversed the decision to close all its physical stores.

But he also said the move to close 10 percent of stores and evaluate others is the right thing to do, and said most retail companies do that all of the time.

American electric auto maker Tesla has raised vehicle prices by an average 3 percent, worldwide. Some of those stores that have closed may now reopen with a smaller crew. Tesla has stated that only the most expensive variants of the Model 3, S and X will be impacted.

The Tesla dealership on West 4th Avenue is one of Tesla’s three Metro Vancouver sales outlets.
NICK PROCAYLO  
PNG
The Tesla dealership on West 4th Avenue is one of Tesla’s three Metro Vancouver sales outlets. NICK PROCAYLO PNG

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.

Barclays analyst Brian Johnson said it would also be hard to achieve the cost savings needed to lower the price of the Model 3 through store closures alone. The pricing change will go into effect on March 18th, giving potential customers a few days to pull the trigger at the lower price point and giving Tesla a demand boost as customers will surely flock to the website to configure and order a Tesla before pricing goes back up.

Tesla Chief Executive Elon Musk has until the end of the day on Monday to explain why he should not be held in contempt for recent tweets that USA securities regulators say violated a September fraud settlement.


Tesla also announced Monday that it has purchased car-hauling trucks and trailers from a California company in a stock deal worth about $14.2 million.

Musk was required as part of a settlement reached with the SEC previous year - over "misleading" tweeted claims about having secured funding to take the company private - to have social media posts containing material content approved before sending them. Stores will also carry a small number of cars in inventory for customers who wish to drive away with a Tesla immediately.

"Most Tesla cars are already pitched towards the higher end of the market, where buyers are less price sensitive".


Tesla's acquisition of Central Valley Transport's trucks will help the company optimize the delivery of its vehicles. It's unclear how that applies to the company's local Australian operations, about which Tesla Australia will not comment.

Tesla was down 0.54%, trading near $282.60 a share early Monday, after the company hit the brakes on its plan to shutter its retail stores.


Related Articles

  • Tucker Carlson Unapologetic Over Audio of Comments Critics Call Misogynistic

    Tucker Carlson Unapologetic Over Audio of Comments Critics Call Misogynistic

    Spin reached out to Fox News for comment, but reps did not immediately respond to our request. Warren Jeffs didn't marry under age girls.
    More people working in Windsor, not enough to boost jobless rate

    More people working in Windsor, not enough to boost jobless rate

    More young Canadians, between the ages of 15 and 24 years old, found work last month as youth employment gained 28,600 positions. The report by Statistics Canada also shined a spotlight on the participation rate of women in the workforce.
    Jaguar Attacks Woman Trying to Take a Selfie at Arizona Zoo

    Jaguar Attacks Woman Trying to Take a Selfie at Arizona Zoo

    Eyewitness Adam Wilkerson, who took the video, told Fox News he heard someone shouting "help" and ran over. Wilkerson then said his mother tried to distract the jaguar by shoving a water bottle through the cage.
  • 'Captain Marvel' lands the sixth-biggest debut of all time

    'Captain Marvel' lands the sixth-biggest debut of all time

    Captain Marvel is also the first Marvel superhero movie that's headlined exclusively by a female superhero. The film garnered an "A" CinemaScore from audiences and a 79% score on review site Rotten Tomatoes .
    Malaysia drops murder charge against Indonesian woman in Kim Jong Nam case

    Malaysia drops murder charge against Indonesian woman in Kim Jong Nam case

    Vietnam has pushed less hard, and recently hosted Kim Jong Un for an official visit and a summit with President Donald Trump . The High Court judge discharged Aisyah without an acquittal after prosecutors applied to drop the murder charge against her.
    Northern Ireland firms warn of economic, social risks from no-deal Brexit

    Northern Ireland firms warn of economic, social risks from no-deal Brexit

    May's deal will be put to the Parlimentary test again on Tuesday but the prospects of it passing do not appear to be high. MPs rejected the prime minister's deal by 230 votes in January - the largest defeat for a sitting government in history.
  • May Day: UK Parliament rejects prime minister's Brexit deal

    May Day: UK Parliament rejects prime minister's Brexit deal

    Referring to Mrs May, Mr Walker said: "She will lead us into that general election". The party's support is crucial if the deal is to pass in the House of Commons.
    Update on Ronda Rousey’s future with WWE

    Update on Ronda Rousey’s future with WWE

    The Champ then asks "what else can I say bad about Canada" as she attempts to play the heel in a mostly joking manner. As for the actions, WWE might suspend her until WrestleMania 35 , as they don't want to jeopardize the main event.
    Britain on storm alert with threat of widespread gales

    Britain on storm alert with threat of widespread gales

    Cloud will increase from the south-west later today with rain arriving in parts of Munster and south Connacht towards evening. So storms will be named for weather systems which is expected to result in the Met Office issuing an amber or red warning.
  • Tyrann Mathieu means Chiefs no longer have to count on Eric Berry

    Mathieu can't officially sign until the league year begins on Wednesday, but he can negotiate with teams. He spent five seasons in Arizona before penning a one-year deal with the Texans.
    9-Year-Old Found Dead in Duffel Bag

    9-Year-Old Found Dead in Duffel Bag

    The Los Angeles County Sheriff's Department confirmed the child's identity Sunday as Trinity Love Jones of Los Angeles County. A few hours later, Los Angeles County Sheriff's deputies revealed with horror what they'd found inside: A child's body.
    Pelosi, Schumer threaten government shutdown again

    Pelosi, Schumer threaten government shutdown again

    The president's budget proposal looks to hire almost 3,000 law enforcement personnel for the agencies involved in border security. Medicaid is a health-care program for low-income and disabled Americans, run jointly by states and the federal government.