Tesla to Raise Prices, Close Fewer Stores Than Flagged

Tesla to Raise Prices, Close Fewer Stores Than Flagged

Tesla to Raise Prices, Close Fewer Stores Than Flagged

The company noted that it already shuttered 10 percent of sales locations that weren't generating sufficient foot traffic, and those will remain closed.

FBN's Charlie Gasparino discusses Tesla CEO Elon Musk's Model 3 announcement and the company's cash problem.

That move was supposed to help lower prices by about 6 percent on average, instead Tesla will raise prices by about 3 percent on average and it will keep more of its retail stores open, according to the company.

Tesla has walked back on its decision to close most of its stores in order to save costs, announced two weeks ago.

It's unclear how many stores Tesla will keep open, exactly, and where.

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While it is as yet unknown if the Model Y will be made immediately available in the base version, it is known that there will be a mix of the shorter range base Model 3 and higher range and spec'd models being produced at the same time at Tesla's Fremont auto factory. It added that the future of another 20% of locations will be under review in the next few months. There will be no price increase to the $35,000 Model 3.

Potential Tesla owners will have a week to place their order before prices rise, so current prices are valid until March 18th. Buyers coming into stores will be able to do a test drive, and if they choose to buy a auto, they'll be shown how to do that on their phones.

Fortunately, test drives will still be available by request and stores will have a few cars on hand for anyone who decides they need to buy one on the spot.

While the teaser itself doesn't reveal a whole lot about the Model Y, it does show that its headlights will more closely resemble those of the Model 3 than the larger Model S sedan and Model X SUV.

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