In its blog post announcing the change, Tesla said that, "we have made a decision to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months". As a result of keeping more stores open, Tesla is going to raise vehicle prices by about 3 percent across the globe.
Now, however, the company has backtracked, saying in a blog post that it has taken a close look at each of its stores and realized it makes more sense to keep majority open.
Despite keeping more stores open, Tesla will still use an online only sales model worldwide, with all vehicle sold with a seven-day or 1000-mile return policy.
Tesla justified online ordering saying that its generous return policy will compensate test drives as buyers can return a auto with seven days or 1,000 miles.
Some stores will keep a small inventory of cars on hand so purchasers can drive away in a new vehicle immediately.
It is worth noting, that the price hike will not impact the $35,000 base Model 3, only more expensive Model 3 trims, the Model S, and the Model X. We think this was a smart decision in order to avoid consumer backlash.
In this June 14, 2018, file photo, Tesla CEO Elon Musk speaks at a news conference in Chicago.
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Tesla on Sunday announced that it would reduce the number of store closures that it had previously announced.
Now, to make ends meet, the price of other models will go up by 3 percent.
On Monday morning, SEC Chairman Jay Clayton declined to comment when approached by Reuters at an event in Washington on what penalties the agency planned to pursue against the billionaire.
Earlier today Tesla announced its long-awaited $US35,000 Model 3. That tweet, the SEC argued, violated a September fraud settlement barring Musk from sharing material information about Tesla on social media without the company's pre-approval. One of the stipulations of this settlement was for Tesla to oversee all of Musk's future tweets to ensure they had no impact on the vehicle manufacturer's stock price.
Shares of Tesla Inc. edged up less than 1 percent in Monday trading. Given The Economist Intelligence Unit is forecasting consumer price inflation of 2.2% in the U.S., this is less than a 1% increase in real terms.
Less than a fortnight ago the electric auto maker said it was taking sales nearly entirely online in a move it said would reduce the cost of selling a vehicle by up to 6pc and help lower the cost of its cheapest auto, the Model 3, down to $35,000 (£26,700). The email to employees was also followed by a public-facing blog post.
Before the announcement, the cheapest Model 3 started at $42,900.