American EV manufacturer Tesla has announced a price hike on all its model except the recently launched affordable Model 3, with effect from March 18.

The Standard Range as we are told will be the only exception which will continue with its $36,200 starting price. Tesla reasoned the price hike to cover the cost of keeping more of its physical stores open. In an announcement last week, the company announced the closure of ‘many’ of its 378 stores as it migrates towards online-only sales.

tesla model 3 performance

The Standard Range Plus was launched at $28,950 delivering 380km of range and a top speed of 225kph.

Reports suggest that Tesla is currently examining the performance of its stores both in terms of sales and foot traffic in order to decide which will stay open. The company estimates that the price increase would mean that it will close about half the number of stores that were originally planned. Meanwhile, the company also stated that the employee count will still be lower as the company completely kicks off the online sales process.

Tesla stated that potential customers will still be able to book a test drive through one of the stores after it moves towards online sales. A few of the stores will also have a small number of cars available for immediate delivery.

Tesla Model Y

Model Y holds significant importance in Tesla’s ‘Master Plan’ to line itself up to enter a booming marketplace.

After launching the Standard Range Model 3 this year, the company is set to unveil the all-new Model Y in a couple of days. Tesla CEO, Elon Musk has said that the Model Y will be roughly 10 per cent bigger than the Model 3 and will be priced about 10 per cent more than the same – putting the compact SUV in the $51,975 ballpark if a standard model is offered. Reports suggest that the production of the new model will take place at its Gigafactory in Nevada, alongside Tesla’s battery packs and electric motors.

Up to three-quarters of Model Y’s components will be shared with the Model 3, including the platform. Following this, we also expect the Model 3 to join Model Y at the facility in Nevada. Tesla had originally planned for the Model Y to hit showrooms this year. However, in light of recent setbacks such as the firm’s record loss of $679 million, the project was postponed. The Model Y’s launch date has since been revised, and it’s now expected to reach the market by 2020.