DETROIT (AP) — Tesla is walking back plans to close most of its showrooms worldwide and announced price hikes for most of its electric vehicles.
Tesla announced last month that it would shutter most of its stores to cut costs so it could sell its lower-priced Model 3 for $35,000. The company continues its shift to toward online-only sales, but now says it won’t close as many stores as originally thought.
The $35,000 base Model 3 will still be available, but the company is raising prices by 3 percent on all other models.
In a Monday filing with government regulators, Tesla now says it closed 10 percent of its stores, but a few of those will now remain open. Another 20 percent are being evaluated and some could remain open.
The company gave no numbers, but said it would close only about half the stores that it had intended to. It has 378 stores and service centers worldwide and about 100 stores in the U.S. If the company closes 30 percent of the stores that would equal about 110.
Remaining stores could have fewer workers but will have vehicles available for test drives and a small inventory in case people want to buy immediately, the statement said.