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Tesla to keep more stores open, lower vehicle prices by 3%

Tesla to keep more stores open, lower vehicle prices by 3%

Tesla Inc. announced March 10 that it has decided to keep significantly more stores open than it had anticipated after conducting an evaluation of its retail locations.

The California-based automaker initially wanted to wind down most of its physical stores as part of its shift to an online-only sales model.

However, Tesla said it plans to reopen a few of its high-visibility locations with a smaller crew. The move comes after the company closed 10% of its stores for not inviting the "natural foot traffic our stores have always been designed for."

The carmaker added that another 20% of its stores are still under review.

Tesla noted that all of its sales worldwide will still be done online. Its retail locations will only showcase a small number of its cars "for customers who wish to drive away with a Tesla immediately."

The company originally planned on lowering its vehicle prices globally by 6% but will cut that to 3% as a result of its decision to keep more stores open, Tesla told S&P Global Market Intelligence. The price change, which will take effect after March 18, will only apply to the more expensive variants of the Model 3, as well as the Model S and Model X vehicles.

"In other words, we will only close about half as many stores, but the cost savings are therefore only about half," the automaker said.