BREAKING NEWS

BREAKING NEWS

Tesla to raise vehicle prices, keep more stores open

Tesla to raise vehicle prices, keep more stores open
FILE PHOTO: A parking lot of predominantly new Tesla Model 3 electric vehicles is seen in Richmond, California, U.S. June 22, 2018. REUTERS/Stephen Lam/File Photo -
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(Reuters) - Electric carmaker Tesla Inc said on Sunday it will raise prices of its high-end vehicles by about 3 percent on average as it plans to keep more retail stores open than planned.

Tesla said the worldwide price hikes will apply to the more expensive variants of Model 3, Model S and Model X, and there will be no price increase to the $35,000 (£26,975) Model 3.

The carmaker said potential buyers can place orders until March 18 at the old prices.

The move comes after Tesla said last month it was shifting all sales online to help lower prices by about 6 percent on average, allowing it to achieve the $35,000 Model 3 price point earlier than expected.

Cost savings from store closing will be only about half the expected amount as the company will close only half the number of stores planned, it said.

The carmaker said a few stores in high-visibility locations that were closed due to low throughput will be reopened with a smaller Tesla crew.

Tesla said the stores will carry fewer cars in inventory for customers who wish to drive away with a Tesla immediately.

(Reporting by Rishika Chatterjee in Bengaluru; Editing by Subhranshu Sahu and Gopakumar Warrier)

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