On Thursday, February 28th of this year, Tesla had revealed their plans to close all physical stores. They will instead rely solely on online sales from their customers. Making this massive move would mean that Tesla could sell the Model 3 for $35,000USD– a six percent decrease of its original price.

But oh, how things can change rapidly.

It was only a few weeks later when Tesla revealed in a new blog post that their remaining stores will no longer close.

That being said, 10 percent of locations had already closed their doors by this time.

However, Tesla admitted that those specific locations were on track to shut down in spite of their previous announcement. Tesla explained in their blog post that the change in plans came about after they spent two weeks evaluating all of their store locations. They added that some stores that had been closed before would open again, albeit with less employees than before. 20 percent of stores would remain under Tesla’s review for the next several months. This is so the company can decide which will close and which will stay open.

So, what will Tesla do instead? Their plans are to raise the prices of their vehicles by three percent around the world. The $35 000 Model 3 was the only vehicle not affected by a price increase. The same could not be said for the pricier Model 3, the Model S, and Model X. The change went into effect by Monday, March 18th.

Tesla’s blog post didn’t explain why they did an about face on their initial decision, leaving customers curious about the situation. However, customers were able to learn that keeping physical stores won’t stop Tesla from continuing to sell all their vehicles online. Those who work at Tesla dealerships will now show customers how they can order a Tesla of their own right from their phone. In addition to this, what’s been described as “a small number of cars” will be available for any customers itching to buy a Tesla as soon as possible.

 

For those who follow the car company closely, this decision will leave many wondering if this change will be what they needs to improve their numbers. With Tesla refusing to elaborate further, it’s truly anyone’s guess whether it will work or not. This is one situation that will be monitored closely by car experts, customers, and Tesla fans alike to see what happens next.

Source: The Verge

Stay in touch with me

Be inspired through Jason’s Instagram

Build your brand with Jason’s Facebook.

Learn weekly from Jason’s YouTube

Get inside Jason’s head with Twitter.

Be inspired through Jason’s Instagram

Build your brand with Jason’s Facebook.

Learn weekly from Jason’s YouTube

Get inside Jason’s head with Twitter.

More

Bigger.Faster.Stronger

Get in TOuch