Tesla scales back plans to close stores

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Tesla scaled back plans to close many of its stores and will raise prices of many ofits electric vehicles by about three percent.

The company announced this week it looked at its retail locations and decided to keep “significantly more stores open.”

Tesla has a gallery in Christiana Mall near the Nordstrom store that accommodates a couple of its vehicles. The automaker a sales and service location in Denon, PA. Christiana Mall has among the highest

“When we recently closed 10 percent of sales locations, we selected stores that didn’t invite the natural foot traffic our stores have always been designed for. These are stores that we would have closed anyway, even if in-store sales made up our entire sales model,” the company stated in a release. “A few stores in high visibility locations that were closed due to low throughput will be reopened, but with a smaller Tesla crew. In addition, there are another 20 percent of locations that are under review, and depending on their effectiveness over the next few months, some will be closed and some will remain open.”

Tesla said it will “only close about half as many stores.” as first announced.

The price increases will not affect the $35,000 base price of the Tesla 3 sedan that can run more than 200 miles on one charge

The company said it needed to close the stores to meet the price target that is seen as essential to the company becoming a sizable player in the U.S. auto market.

The price of a abase Tesla 3 with tax credits can drop to below $25,000. A quick charging station in a garage can run $1,000 with a separate electric line. Motorists can save $800 or more on gas, once the heftier electric bill is subtracted.

More Tesla Supercharging stations are being installed around the nation.

Wawa has Supercharger high-speed charging stations, primarily at Wawa stores. Tesla also has a Supercharger at the I-95 travel plaza near Newark.

Tesla says it will not change its online-only sales model and will still offer the return policy of 1,000 miles or seven days, whichever comes first.

On Thursday, the company introduced the long-rumored Model Y crossover vehicle that could come out in 2020. (See link to streamed presentation below).

Tesla’s stock price dropped five percent over disappointment over the vehicle that would be competitively priced when compared to rivals.

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