Published: Mon, March 11, 2019
Markets | By Otis Pena

Tesla Changes Its Mind Over Store Closures, Raises Prices By 3%

Tesla Changes Its Mind Over Store Closures, Raises Prices By 3%

Pricing and specifications are under wraps until the Model Y is launched later this week, but Musk has indicated that it will be priced around 10 per cent dearer than the Model 3.

Cost savings from store closing will be only about half the expected amount as the company will close only half the number of stores planned, it said.

Legal experts have said the SEC could now pursue multiple avenues, including a higher fine, imposing further restrictions on Musk's activities or removing him from Tesla's board or helm.

The company stated that it has evaluated all of its stores over the past two weeks and has chose to keep "significantly more" stores open than originally anticipated. These are stores that we would have closed anyway, even if in-store sales made up our entire sales model. "In addition, there are another 20 percent of locations that are under review, and depending on their effectiveness over the next few months, some will be closed and some will remain open". As a result, the company will increase auto prices by about 3% on average, globally.

Unemployment rate falls in region, remains steady in state
But some are concerned that the US economy may be catching a cold as Europe, China and much of the developing world struggles. Average hourly earnings rose more strongly than in January, at 0.4 percent month-over-month and 3.4 percent year-over-year.

Potential Tesla owners will have a week to place their order before prices rise, so current prices are valid until March 18th.

Tesla has reversed its decision to close its brick-and-mortar stores and take sales online only. Buyers coming into stores will be able to do a test drive, and if they choose to buy a vehicle, they'll be shown how to do that on their phones.

The price rises, which will come into effect on 18 March, will add around £2160 to the £72,000 starting price of a Model S, and £2400 to the cheapest Model X SUV, now £80,200.

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