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Tesla Not To Close Its Physical Stores, Will Increase Price Of Cars


03/11/2019


Tesla Not To Close Its Physical Stores, Will Increase Price Of Cars
United States based electric car maker Tesla announced in a blog post its intention to reverse its decision of closing down most of its physical stores and shift all of its sale online. To account for the cost of the keeping all of the physical stores open. Tesla also announced that it would have to increase price of its vehicles by 3 per cent globally on March 18. However the blog post also said that the increase would not be applicable to the $35,000 priced Model 3 which would be available to customers at the same price.
 
The prices of all of the other models which are Exmore expensive - Model 3s, the Model S, and Model X, would see an increase. According to the blog post, Tesla had conducted a two-week-long evaluation of “every single Tesla retail location” and the outcome of that exercise spurred the decision of the company to keep the stores open. The blog post says that about 10 per cent of Tesla stores have been closed recently. “These are stores that we would have closed anyway,” according to the post.
 
At the end of last month, the company y had announced that it would close down most of the physical retailing stores for its cars and would be completely moving on to online mode of sale in most of the markets. The company had also said at that time that it would be able to reduce the price of its cars by as much as 6 per cent because of the cost savings from store closures and shifting sale online. It also said that it was the way that the company would ultimately be able to sell the $35,000 Model 3.
 
The most recent blog pot by the company on the decision reversal however did not clearly state the reasons for the reversing course on closing the physical stores. But the blog post also said that the all sales of the company would still be done online – even at the physical stores. The stores would also have salespeople who would assist customers in being able to place orders for Tesla cars with the help of their smartphones. There will be “a small number of cars” available for those who want to buy a Tesla immediately.
 
“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” the blog post reads.
 
The company also said that some of the previously closed physical stores would be reopened but would have lesser number of employees working there. The company is also reviewing another 20 per cent of Tesla locations of physical stores. “Depending on their effectiveness over the next few months, some will be closed and some will remain open,” the company said in the blog post.
 
(Source:www.theverge.com)


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