Tesla backtracks: it will not close its physical dealerships, but it will raise the price of its cars

Miguel Lorente     11 March 2019     2 min.
Tesla backtracks: it will not close its physical dealerships, but it will raise the price of its cars

After announcing the closure of its dealerships, Tesla backtracks but updates its sales prices for its cars

Once again, Tesla manages to be at the centre of attention thanks to its communication policy. When, at the beginning of the month, the Californian company announced a change in its commercial strategy through the closure of Tesla dealerships in the United States and by centralising the sale of its new cars online, it seems that the company led by the famous Elon Musk has backtracked and now admits that it will not close all of them, but only some of its physical sales points.

In principle, this measure was meant to reduce costs. In fact, the entrepreneur himself stated that they did not expect to make a profit in the first half of 2018, despite the start of deliveries of the famous Tesla Model 3, the announcement of its price for Europe and with the Tesla Model Y knocking at the door.

The investment made in building the Chinese factory for Tesla seems to have forced the company to reorganise its capital and eliminate its sales network in favour of boosting Tesla’s virtual dealerships, which was the first action the Palo Alto team would take.

Tesla will close its least profitable dealerships

Once again, internal sources have announced a correction regarding the closure of Tesla dealerships in the United States.

As happens at other companies, Tesla will assess which distributors are not profitable and will proceed to close them. According to its data, up to fifty percent of the brand’s sales points could be shut down.

Price increase across the Tesla range

At the same time, in order to keep its accounts in order, Tesla has announced that it will raise the price of its vehicles by three percent. A measure that affects all the countries where its vehicles are sold.

That is, the new Tesla cars will increase by three percent in acquisition cost due to this regulation, regardless of the country where any of the models is bought.

It has not been indicated when the price increase for Tesla cars will take effect. What is clear is that it forces us to update the amount these cars are listed at, for example, now that we know the price of the Tesla Model 3 in Spain, a car that has generated enormous interest since its unveiling.

Likewise, we will see whether the Tesla Model Y, which will be presented on the 14th of this month, sees its initial sales price increase. That price was roughly estimated by Elon Musk through a series of messages published on his Twitter profile, or whether it will be presented directly with its final sales price from the start of its official launch.

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