Tesla Raises Car Prices By 3% To Keep Stores Open

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A further 20 percent of Tesla retail locations are being reviewed and may be cut if performance does not improve over the coming months. Musk blindsided many sales personnel at the company with the store closings, and some investors and analysts feared the cost-cutting measures sent troubling signals about the state of the company's sales and cash position. The ones that remain open will act as information hubs for potential buyers, but will also carry cars in their inventory to be used for test drives and even sales.

Tesla announced on Sunday that it is reversing course on a plan to close all of its brick and mortar retail locations. Of course, anyone ordering a Tesla to their home sight unseen will be able to return the auto after 1,000 miles or seven days (whichever is first) thanks to the company's new return policy announced last month.

Tesla is walking back plans to close most of its showrooms worldwide and announced price hikes for most of its electric vehicles.

To help fund the reconceived retail operation, Tesla said it will raise the prices of its Model S, Model X and pricier versions of its Model 3 by an average of 3 percent, starting on March 18.

As a result, the range-topping Model S P100D, which had a United Kingdom price of £131,305, will become the Ludicrous Performance and cost just £83,300 - a monumental saving of £48,005.

Tesla is "clearly in need of a stronger middle management layer", Ellinghorst said. Physical stores will have a small selection for customers who want to test drive a vehicle or drive one off the lot immediately.

Tesla says the move will allow it to keep open more of its Tesla stores than previously planned. Attorney Andrew Meissner said in a statement that Sean Gouthro provided information about Musk's August 7 tweet that he had the financing to take the company private at $420 per share.

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At the start of March, Tesla said it would be closing nearly all of its showrooms, and shifting sales to online only.

A Tesla spokesman declined to comment Monday beyond the company's statement.

The settlement between Musk, Tesla and the SEC resolved an SEC lawsuit over claims Musk had made on Twitter a year ago that he had "funding secured" to take Tesla private at $420 per share.

He said the sooner-than-expected arrival of a US$35,000 Model 3 likely reflected the need to replenish cash after paying off a US$920 million convertible bond and added that weak USA sales early this year also probably hasn't helped.

Before the announcement, the cheapest Model 3 started at $42,900.

Tesla CEO Elon Musk previously said the use of online sales would see job losses in the marketing and sales divisions.