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Tesla decided not to close most of its stores, but increased prices by 3%

Initially, the company wanted to “maintain its financial stability.”

Tesla Store in Los Angeles Photo: MBH Architects
Tesla Store in Los Angeles
Photo: MBH Architects

Tesla announced that it will close half the number of stores than originally planned. Since the beginning of March, the company has closed 10% of retail outlets where there was no “natural pedestrian traffic”. As a result, prices will decrease only by 3%, and not by 6%.

  • For the past two weeks, Tesla has been monitoring the performance of each of its stores. A few points in high-visibility locations that are closed due to low bandwidth will be re-opened, but with fewer staff.
  • 20% of physical stores are still pending. The company said that depending on their effectiveness in the following months, some will be closed and some will remain open.
  • As a result of saving a significantly larger number of stores, Tesla will raise car prices by an average of about 3% worldwide. Price changes will come into force on March 18 and will affect only versions of Model 3 more expensive than 35 thousand dollars, as well as all versions of models S and X.
  • March 1, the company announced the closure of most of the offline stores and lower prices for all Tesla models by 6%. The company argued that it wanted to focus more on online car sales, as well as “maintain its financial stability.” It was also reported that part of the staff would be fired from the company.
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