Tesla has played a reversal nearly two weeks after its CEO Elon Musk announced that the company will shift to online sales leading to a closure of many of its dealerships.
Musk made the announcement on Twitter two weeks ago and immediately gave way to huge criticism for the decision. Moving towards 100 per cent online sales in the future, the American EV manufacturer closed 10 per cent of its plants. However, amid widespread criticism, the company has decided to re-open some of it. Additionally, the company also stated that close to 20 per cent of the remaining stores will undergo scrutiny to see if the company wants to keep them open.
Prices on all models expect the Standard Range Model 3 will be increased from March 18th onwards.
“As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about 3% on average worldwide,” the company said in a statement. “In other words, we will only close about half as many stores, but the cost savings are therefore only about half,” Meanwhile, the company also stated that the employee count will still be lower as the company completely kicks off the online sales process.
Earlier last week, Tesla announced a price hike involving all models except the recently unveiled Standard Range Model 3. The company’s fate, however, could be rewritten with the recently launched Model Y. In a market that has been steadily moving towards high-hauling vehicles and away from sedans, Tesla’s entry with an electric iteration could have a significant impact. Seated below the Model X, Tesla intends to sell the Model Y as a mass-market product.
The Model Y borrows 75 percent of its components from the Model 3.
The compact crossover has been built on the same platform that underpins the Model 3. It successfully blends a lean, athletic look of a sports coupe with the spacious and practical vibe of a utility vehicle- all without burning an ounce of hydrocarbon.
Tesla CEO Elon Musk states that the Model Y is capable of reaching 100kph in about 3.5 seconds. In addition to this, Musk also stated that the long-range model will come with a ‘true and usable’ range of 482km and will hit the showrooms first with a price tag of $47,000. Meanwhile, the base version which will be slower with shorter range will be available from $39,000 by 2021.