Tesla Changes Strategy: Will Raise Prices And Reduce Store Closures

MAR 11 2019 BY STEVEN LOVEDAY 236

Apparently, the initial strategy isn’t going to work?

Tesla just announced that during further evaluation of its plan to close many stores, it has come to a new conclusion. The automaker now plans to leave “significantly more stores” open so that it can continue to evaluate the situation. Tesla points out that the stores it previously closed weren’t popular stores in the first place, and would have been closed regardless. It will have to review other stores over many months to determine if closure makes the most sense.

In the meantime, the automaker will increase prices globally by about 3 percent. However, it’s important to note that the $35,000 Standard Tesla Model 3 will remain unaffected. The company says this price increase will only apply to the more expensive variants of its vehicles. This includes the Model S and Model X as well.

In the end, Tesla explains that only closing about half as many stores means about half the overall savings. So, increasing the price on its more expensive vehicles is an attempt to make up the difference. Keep in mind that the plan could change again once the company has further evaluated the situation.

All of this means that interested buyers have until March 18, 2019 to buy a Tesla vehicle at the current prices. After that, the increase will take hold.

Below is Tesla’s full blog post:

Update on Tesla Stores and Pricing

The Tesla Team March 10, 2019

Last month, we announced that we would be winding down many of our stores and moving to online-only sales in order to pass the savings along to our customers.

Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months. When we recently closed 10% 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. 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% 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.

As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about 3% on average worldwide. In other words, we will only close about half as many stores, but the cost savings are therefore only about half.

Potential Tesla owners will have a week to place their order before prices rise, so current prices are valid until March 18th. There will be no price increase to the $35,000 Model 3. The price increases will only apply to the more expensive variants of Model 3, as well as Model S and X.

To be clear, all sales worldwide will still be done online, in that potential Tesla owners coming in to stores will simply be shown how to order a Tesla on their phone in a few minutes. And the generous return policy of 1000 miles or 7 days, whichever comes first, should alleviate the need for most test drives. However, cars will still be available for test drives at stores at the potential Tesla owner’s request. Stores will also carry a small number of cars in inventory for customers who wish to drive away with a Tesla immediately.

Source: Tesla

Categories: Tesla

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236 Comments on "Tesla Changes Strategy: Will Raise Prices And Reduce Store Closures"

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Everything look fine and normal at this company, nothing to see ;-).

LOL.

why would everything be fine and normal at a new car company?

New? Tesla has been around for over 15 years. Spare me the “new company” talk.

Almost everything Tesla is doing is new. In America they are certainly the newest high-volume automaker and they only reached that status in the last 12 months.

What bull pucky. Tesla is still very much in the fast-growing “new company” mode, still experimenting with what will and won’t work… as these recent changes in plans clearly show.

Tesla is still a start-up. The only successful new car company in more than half a century AND it is using a completely different drivetrain. And they are spearheading self-driving.

I bet the GM stealership that MadBro works for has been around longer then Tesla.

For how many more years do you plan to troll Tesla? After the Y reveal? After the Pickup reveal? After the Y launch? After the Semi Launch? After the Pickup launch? How about after the Roadster launch? Eventually the Prius trolls just got tired of posting idiotic things. When will the Tesla trolls give up the ghost?

Well because I keep hearing how there’s so much smarter and better than everybody else plus they are not really a new are they haven’t they been out at dozen years

Their first high-volume vehicle came out ~18 months ago and only began to strain their delivery and sales model fairly recently. It’s about as new as it gets. Tesla didn’t assemble their own cars before 2012 (Roadster was a conversion).

Nice to have it both ways

What a troll. Citing actual facts, entirely relevant facts, isn’t “having it both ways”.

Yeah I know buddy when good Tesla news comes out all you hear about is how all the other car makers are old and stupid with their flip phones and how Tesla is so much better than everyone else but then when bad news comes out it’s “oh they’re picking on me they’re being mean we’re new we just started this last week”…. That’s called having it both ways if you’re going to claim your new so you’re not going to get everything right don’t be so boastful and condescending when you do either that or expect people to turn around and stick it to you.

You seem to take all of this very personally. What’s that about?

Just by “Chris’s” post count here he has become perhaps the leading serial anti-Tesla troll lately on InsideEVs.

Ya ya I’m just counteracting all the Tesla fanboys who troll every company that isn’t Tesla.

Are they trolling them on articles that don’t cover Tesla? Because I haven’t seen that.

Again, what is your personal stake in this?

Have what both ways? Tesla is doing something that’s extremely hard. You’re throwing rocks at them while they do it. Like any simple troll.

A dozen years? Tesla has only been making cars on its own production lines since 2012. In case you need help counting on your fingers, that’s only 7 years. Even if you count the production of the Tesla Roadster, it’s still less than 11 years.

11 is basically a dozen. Those assembly lines were in place years ago. So he can get a car company up and running better than everyone else in 10 years and he’s going to have us all on Mars in 20 kicking back smoking weed? okay I’ll give him the benefit of the doubt they haven’t been doing it that long so when is so-called legacy automaker comes out with an electric car are they going to get that benefit of the doubt? Is it going to be well this is their first attempt at a true electric car from the ground up so give them a break if there’s something wrong with it?

No – the old OEMs get their grief because they can’t ramp up EVs as much as Tesla detractors have been saying since before 2012 that they can. “oh, you just wait – whenever ____ comes around to EVs, they’ll leave Tesla in the dust!” Nope, hasn’t happened, and their targeted production rates are a full order of magnitude lower than Tesla’s targeted production rates. Fair or not, the big OEMs are going to get some heat for that.

Also no – Tesla has not had their own manufacturing of all key components: frame, body panels, cells, packs, motors, inverters, differentials, etc., etc., until 2012 with the introduction of the Model S. And there were problems. They fixed them and have ramped up. Now, Model 3 started at (for Tesla) unprecedented volumes, and there were problems. They’ve fixed most of them, it seems, and they are ramping up.

All new models from all automakers have problems, whether trivial or life-threatening, so any sniping on that aspect is unreasonable, agreed.

He’s apparently upset because the Bolt was leading the Model 3 in volume until Tesla started making the Model 3. Every Tesla killer to date has turned out to be a nothingburger on wheels.

The stupidity of your question is just dumbfounding. Which company are you upset won’t get credit when they eventually do something that they haven’t really tried to do yet?

Why does it bother you? If you don’t want the car, then just move along.

Some really great management decision going on. Should make sure those guys are well paid…

Wow! The anti-Tesla troll brigade is out in full force today, isn’t it? 🙄

There must be literally dozens of Tesla bashing comments here. Stock shorters watching another short squeeze coming, perhaps?

Yeah everyone who ever says anything remotely negative about Tesla is a stock shorter… How is it in the bunker today?

No, Chris, that’s not what’s going on. I’ve said plenty of negative things about Tesla. And I’ve owned one of the cars since ’15. The strange thing is what motivates you to post 100% negative and 100% pointless comments. What motivates you, Chris? Because if you don’t want to buy the car, then just move along.

Meanwhile, the Chevy Volt has ceased production altogether. Womp womp!

That is life at a Silicon Valley start-up! Move fast & break things. (Yeah, I know they are 10 years old but Tesla is really still a start-up. The only successful new car company in more than half a century.)

**facepalm**

But Evannex just told me that closing the stores was the right thing to do. Is Evannex anti-Tesla now?

Evannex is sycophantic sometimes when it comes to Tesla announcements.

Evannex is sycophantic ALWAYS with Tesla announcements

(⌐■_■) Trollnonymous

I usually skip their articles.

So what? They will release an article later today explaining why this change of strategy is such a brilliant move.

Let’s bet on the title of the next EVANNEX article. My favorites are:

“Why only closing halve of the stores is actually the best idea ever.”

“Why announcing things first and only thinking about the consequences after taking a beating on the stock market, is what true innovators do”

“Tesla’s innovative Vertical Integration model wins again!”…

“Elon Musk Has the Cajones to Make Decisions No Other CEO Would Make. And Then Make More Decisions No CEO Would Ever Make”

And “Bro1999 continues to have no life and begs for attention by posting trash on Tesla articles.”

“Tesla’s innovative flip-flop strategy keeps short sellers off balance.”

Oh, what cabbage. Tesla didn’t reverse course on closing all of its stores due to the reaction of the stock market. Tesla isn’t interested in short-term plans, but in long-term ones.

So you’re saying the closing of the stores getting reverse within a couple weeks with a long-term strategy?

You don’t read well, do you?

Ok that‘s the funniest one, but I think it’s too long to be a headline…

Neither you nor Evannex know how any of these decisions affect Tesla’s sales volume/profitability/service experience. So the truth is that Evannex remains a pumper and you remain a fluffer.

Disheartening to watch. Looks like complete chaos over at Tesla’s as it seems to be grappling to deal with lower than expected demand for Model 3. Looks like a failed experiment: the low pricing did not trigger the tsunami of demand Tesla was hoping for(delivery times have increased but not dramatically) and now Tesla is walking back on its online only strategy. Good move in itself, the online sales model is not a good fit for a complex product like cars. I anticipate a difficult time for Tesla until Model Y can pick up the slack. A lot hinges on March 14th!

Meanwhile the media will have a field day with this (as do the trolls…), all this negative reporting in itself is likely a major cause of lower than expected demand. Too bad Tesla is adding to it with chaotic and poorly thought through policy changes. Keep your cool Tesla!

Instead of nonsense like the “Tesla referral scheme” – which is giving two free Tesla Roadsters to people like Fred Lambert of Electrek – Tesla should have done conventional advertising. Conventional advertising would actually give a better image to the product in different demographics, beyond just attracting internet geeks who will like the products anyway.

Perhaps, but giving away a few free Roadsters is probably much less expensive than traditional advertising. Tesla has proved it can make great cars, and more recently that they can do so on a budget. Now they’re trying to figure out how to become a successful growing company while continuing to show a profit.

Instead of nonsense like the “Tesla referral scheme” – which is giving two free Tesla Roadsters to people like F Lambert – Tesla should have done conventional advertising. Conventional advertising would actually give a better image to the product in different demographics, beyond just attracting internet people who will like the products anyway.

if Q1 first estimates are accurate it will be a disaster.Also bad luck that cars sales are crashing all over the world at the same time (esp China)

What estimates?

“Global Equities Research analyst Trip Chowdhry said Tesla (NASDAQ: TSLA) Q1 delivery numbers “could be very bad,” He is reducing Model 3 Deliveries estimates to 30,000 units, down from previous estimates of 60,000 Units. He is reducing Model S/X Deliveries estimates to 18,000 units, down from previous estimates of 23,500 Units.

Chowdhry said the price reduction is not stimulating US Demand. Meanwhile, brand dilution is at risk and customers may be viewing lower priced Model 3s to be dummified/stripped version of Model 3.

While the U.S. is struggling, Chowdhry said it appears to them the company is producing high levels of Model 3s with low price, with focus towards Chinese and International consumers.

Chowdhry has been an ultra-bull on Tesla, so today’s comments could have an impact come Monday.”

It’s unclear to me what he bases such negative projections on, but I would agree that a rather serious demand problem appears to be at the heart of Tesla’s bizarre flip flopping on its sales model.

About dummified/stripped : that’s what an entry level car of all premium brands looks like and I think Tesla’s actually offers remarkable value for its price, so color me surprised that it didn’t trigger that sales bonanza. I have a hunch that the perennial negative press surrounding Tesla has a lot to do with it as it affects consumers faith in Tesla.

I was always concerned about the level of actual demand once Tesla burned through the backlog. I guess a lot of reservations must not be turning into actual orders? I am a little surprised though. I would have thought that the base model would have stimulated demand for at least a couple more quarters.

That was my hunch too but clearly the effect wasn’t what was hoped for. I think the perpetual negative press Tesla is getting has eroded consumer confidence.

We’ll find out when actual numbers are reported.

The stories about Model X demand being about spent when the reservation list was nearing its end didn’t prove very prescient, did they?

I think it has less to do with the negative press and more to do with Tesla fans wearing blinders who thought that for every Tesla pulled into a driveway 5 neighbors would run out and get one once they saw it. I always thought fans were overestimating demand.

I swear, it’s like we’re getting comments from Earth-2, the Bizarro world of Tesla bashers, which have no relevance at all to what’s happening in the real world.

Tesla raising prices and deciding not to close many or most of its Tesla stores pretty conclusively indicates an increase in demand and increased confidence in revenue and profits at Tesla.

Yet in response to this news, just in this one comment thread there are literally dozens of comments claiming falling demand and “chaos” at Tesla!

*Sigh* Looks like for today at least, the anti-Tesla “Wolf! Wolf! Wolf!” pack is winning the propaganda war.
🙁 🙁 🙁

Fortunately, just as with all the many, many campaigns by FÜDsters to attack Tesla and destroy public confidence, it will fail. It will fail because Tesla really is doing things better.

Keep going Tesla!

okay let’s say we fully understand and accept that raising prices means that demand is great then why did they lower prices before they raise them back again? If the lower price Model 3 was indeed profitable and demand was great before they lowered prices then the lower prices theoretically should have made the man go through the roof so why raise them again?

It must have something to do with why they changed tack on keeping more stores. That brought the price back up, most likely.

I think the problem with the store closures is they were on the hook for long term leases that they couldn’t get out of. But how does no one realize that is going to be a problem before making the announcement?

This sort of thing is what makes me very wary of Tesla’s. It just doesn’t speak to a whole lot of competence on the part of management. Maybe everyone is too afraid of being fired to tell Musk the truth about anything?

Tesla would have to pay a termination fees, which are usually written into a commercial lease.

I think just as important in Tesla’s drive to cut costs was reducing its store labor costs. In particular, Tesla wanted to eliminate the fat commissions it was paying to its sales staff, many of whom earn total annual compensation in the six-figure range.

What a load of B.S. Tesla was paying very little in commissions, as compared to normal auto dealerships. The only commissions were for a rep upselling to a Performance trim level of Tesla’s cars.

You’re wrong again Pu-Pu. Tesla drastically reduced the compensation of retail employees up by eliminating their commissions and bonuses. Here’s what Electrek had to say:

“Just a few weeks after announcing its new online sales-only strategy, Tesla is now walking back some major parts of that strategy – leaving behind mainly a massive pay cut for its thousands of retail employees.”

“Ultimately, the role of retail employees remains virtually unchanged compared with what they were doing before the original announcement, but they saw their compensation drastically slashed by removing sales commissions and bonuses.”

“The main difference for them is their compensation has been significantly slashed – 50 to 60% in some cases for Tesla’s top salespeople.”

https://electrek.co/2019/03/11/tesla-online-sales-strategy-disguises-massive-pay-cuts/

Yes it comes off like lower pricing will increase volume and offset the lower profit but then the increase volume didn’t come so now they’re back to raising their prices to get where they want to be.

Another missive from the Bizarro world of Tesla bashers, where everything is backwards.

Companies don’t raise prices in response to less demand, Nimrod. They raise prices in response to more demand!

yeah I’m a nimrod or maybe the people who love Tesla are the ones who have the money and are willing to pay for the higher price version. You’re right they don’t raise prices if demand is weak then why did they lower them then raise them that makes no sense. If I’m selling every single one of a product that I can produce and I’ve heard for years that Tesla’s only problem is that they are production constrained and that the man is basically unlimited then why lower the prices? maybe they figured that the people who drank the Kool-Aid or going to buy one no matter what so let’s fleece then a little extra.

Wrong again Pu-Pu. Tesla’a Blog post within the article above states the following:

“As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about 3% on average worldwide. In other words, we will only close about half as many stores, but the cost savings are therefore only about half.”

“Wrong again Pu-Pu.”

Name calling? Are you 12? And, nothing about the quote shows him wrong.

So him calling me a nimrod doesn’t qualify as name calling?

Well, he wasn’t wrong.

*sigh* the low demand trope again. Anybody who continues to fall for this narrative is an unfortunate soul.

So they were cutting prices even though demand hadn’t faltered?

Because they promised to. That’s why. There obviously is no demand problem if they are raising most of their prices.

That’s ridiculous. They lowered prices because they promised to and then raise them back up in a couple weeks? What’s the point of that?

They aren’t raising them all – duh – the base trim is staying put.

Obviously, there was a problem with closing the stores that did not come up until after the announcement. Nobody knows exactly what those problems are. The only acknowledged problem is leases, but as others have pointed out, they knew about their leases before making the decision.

I’m sorry that you can’t grasp the concept that things have changed… or more likely you’re just playing dumb as part of your anti-Tesla campaign.

Domestic demand for Tesla’s cars was clearly down, partly due to a reduction in the Federal tax credit, resulting in Tesla lowering prices.

Now that Tesla has increased demand by pulling more demand levers, and with the end of the annual car selling doldrums of January/February, Tesla nas more demand again, and is raising prices in response.

Trying to characterize Tesla responding to changing market demand as “chaos” or poor planning is… well, it’s either a shocking level of misperception, or it’s outright FÜD, or more likely (looking at the astonishing volume of negative comments in this thread) it’s some of both.

at least you acknowledge the prices were lower due to lower demand unlike most Tesla fans. I clearly remember when prices were lowered Tesla fans vehemently attacked any claim that they were lowered due to slackening demand and that they were simply lowered because Elon promised it and he loves everyone.. back then ,and by back then I mean a couple weeks ago, any connection between lowering prices and demand was considered FUD but now when they raise prices it’s all because demand is through the roof…🤔

You attribute the supposedly temporary lower demand to two factors. #1) the federal tax credit being cut in half, well I’m going to assume that the situation regarding that is the same so I don’t see why you would cut prices and raise them within a month based on that if the condition hasn’t changed. As for #2) you said it was the fact that January and February have slow sales. Well I’m going to go out in a limb and say that if you and I both know that then the genius executives at the most forward-looking car company who you claim only think long-term not short-term would be aware of lower sales during those months. I would also think they’re aware that eventually January turns into February and then February turns into…….drum roll…… March. I’m not an auto executive but I think lowering prices for what you know is a temporary lull to just raise them right back up comes off as knee-jerk and reactionary and that a stable profitable company would just ride those couple months out but what do I know. .

An about-face less than 2 weeks apart has nothing to do with demand. It obviously has something to do with the reason(s) behind changing course on the stores. They are raising prices in direct proportion to the switch to keeping more stores.

So why closing less stores?

“So why closing less stores?”

A reasonable guess is that they learned new information which changed their minds. Does that fit your narrative?

Then somebody should be fired if they go from closing all the stores to only 10% in 3 weeks time. Didn’t know the truth was a “narrative”. Maybe the information should be gathered BEFORE the big decision is made.

Does Mr. Musk’s right hand know what his left hand is doing?

That’s the twitter approach, tweet first, think later.

At times like this morning, I wonder if his right hand knows what his right hand is doing.

Score one for Bob Lutz being right. I hate it when I agree with that old codger.

Even a broken clock is right twice a day….

Only if the clock is still on the wall, and wasn’t riding in a 737 Max!
Ohhh!
😬🤯😩

Yeah Boeing having 2 new planes crash shortly after takeoff. Doesn’t make me want to fly on one of those planes.

Too soon

No…just partial credit. They are still going to close down a lot of stores but keep some. It was a bold move but perhaps a bit too over ambitious.

I still feel they need to create an app for allowing existing owners to offer test drives to prospect owners for Telsa bucks & swag.

” It was a bold move but perhaps a bit too over ambitious.”

A very real possibility. It is also possible the board simply decided they wanted to go slower to reassure investors. The Model Y is based on the 3 in a similar vein, but these potential explanations don’t fit the Elon is nuts narrative.

The lease agreements for store locations likely had something to do with this.

But how is it possible they were not aware of that fact?

Shoot first, then have the trial to uncover the facts.

Kind of concerning, isn’t it?

Now you’ll be labeled a “concern troll” by the TSLA zealots.
Tesla is acting like a wounded animal that knows its days are numbered or something.

What is concerning is the complete lack of critical thinking on display in so many comments today.

Gross incompetence?

Or was that a rhetorical question?

It’s not, because they were entirely aware. Duh!

Wow, the lack of critical thinking on display today is shocking.

I’m sure that Tesla knew what the terms of its leases were. In case you weren’t paying attention — and I guess you weren’t — Tesla said its plans were to close stores over the next few months. Not all of them instantly, and very likely not planning to pay lots of penalties for early termination of leases.

Convinced that the initial strategy will continue, only for the outside world it may take a little longer as too many analists were banging on it. As others say, the lease contracts need to expire first.
Remember that they never said all stores would close but “the most performing stategic onses would stay open”. Where is the difference here? A little extended timeframe nothing else + thats the right path to the future.

The difference is that Tesla went from most will close to most will remain open. Per Electrek only 10-30% of locations will close in today’s (but not necessary tomorrow’s…) strategy. And there is not really a viable path to an online only business model. Cars are too complex product for that.

Have you tried the Configurator? What you can afford will dictate the range and AWD options. Once you get past that point the Model 3 is basically the Model T of the 21st century. A total of 5 colors (times 2 for interiors colors) and 2 wheel choices. Changing wheels is a nothing burger in terms of the overhead and hassle of a 1000$ upgrade. Autopilot and self driving are options that change with a software update.

My guess is that we will hear that the short range battery is a software limited version of the mid-range battery. If it costs Tesla somewhere in the neighborhood of 100$/kWh to add cells to the existing battery and maybe they would only be able to eliminate 4-6 kWh between the short- and mid-range car, it would just make sense to sell the range upgrade later for 1-2000$. It also fits the pattern of the X and S, as well as the Performance versions being a software upgrade (plus tires, wheel, calipers, springs/shock valving for another 9000$).

The big difference is, that between then and now, we have had a tremendous amount of improvement in manufacturing, process engineering and delivery automation.

Back then every part had to be stored and then searched for etc. Today you can do that highly automated, where the line knows, when to put in what. So leaving out some cells on a module, selecting the right modules for the pack and then the right pack for the car, can be done w/o any additional cost at high volumes.

Actually, if Tesla started Renting out Tesla cars, by the Hour, Half Day, Day, and Week, the Rental Customers would need less time and support, overall, as the Rental Period would be their Training period!

Just include 1 Supercharger Visit per Day, or 7 per Week long Rental, in the Rate! Plus, even before buying, they would be showing them to friends, taking trips, etc. All that is like extra priming of the pump!

Might get around Texas and Utah “Stealership Franchise Laws”, since it was a Car Rental Agency!

Agree, there are a lot of possibilities to compensate for the closing of stores but the analists and the media made a drama out of it which put the stock under pressure on a bad moment. The tpoic attracted almost more attention as the unveiling of Model Y.

“The tpoic attracted almost more attention as the unveiling of Model Y.”

Yet another potential contender for why to walk back the store closings. Admittedly most of these are related to the paid liars.

@ Robert W.,

A potential Tesla and Turo rental partnership in the “Stealership States”, could possibly go a long way to help circumvent the current 16,500 NADA members political and legislative stranglehold.

And exactly how would Tesla start renting out cars. Open a rental car business, partner with an existing, etc…? All good ideas, but Tesla didn’t announce that. They just said they were closing stores to reduce cost and switch to 100% online sales. With a lack of details analyst and the media will fill in the blanks with whatever suits them – right or wrong.

“And there is not really a viable path to an online only business model. Cars are too complex product for that.”

Possibly true at some level, but Tesla is selling a lot of cars in States where they have no dealers. The dealer restrictions have given Tesla a lot of comparative information regarding the impacts of stores, galleries, and internet only sales models.

“And the generous return policy of 1000 miles or 7 days, whichever comes first, should alleviate the need for most test drives.“

Tesla is still in denial, and will have a rude awakening when the vast majority of customers balk at buying a car without a test drive.

Read the article, Tesla is actually walking back on closing the stores, low threshold experiencing the cars before buying is back on the menu again, now plus a 7 day money back guarantee.

The above quote is from Tesla’s blog post within the article. Tesla believes that most buyers at its remaining open stores will NOT need or want a test drive, because Tesla offers a “generous return policy.” That’s delusional.

I agree! Lots of paperwork hoops to jump through in order to get a purchased “test ride” for 7 days. Many won’t want that bother.

Something is delusional here, all right. It’s your comments!

Yes you are correct many people are going to order a car, Wait months for it, possibly sell their old car to help with the down payment, switch over with your insurance and registration and then 7 days later get rid of it if they don’t like it?

How about a rental service? Rent a car for a week and if you end up buying the car the rental fee is refunded. Easy to get people into cars without all the hassle of buying a car.

So if I can return the car after 7 days, full refund, then maybe I shouldn’t have to pay for that car until 7 days, then I don’t have to process a refund. That would essentially mean a 7 days test drive. Paying a deposit would be a good idea in this scenario.

“…the vast majority of customers balk at buying a car without a test drive.”

Another missive from Bizarro Planet FÜDster, where everything is backwards.

Back here on Planet Earth, according to recent reports, some 82% of Tesla owners bought their car without a test drive.

Do you know this for sure? I say Tesla customers are a different breed and they probably are because they really aren’t car people to begin with, they view it like ordering the next iPhone I guess.

Though they are growing rapidly, Tesla is still not a GM, VW, (fill in another behemoth). When you are gargantuan you can’t move on a dime. At least Tesla has the advantage to make changes rapidly. Tesla just introduced an EV in Model 3 that is changing everything. Guess what, the expansion isn’t fluid! This expansion surely highlights the strength of a dealership’s ability to absorb the imbalance. That said, I still think the non-dealership model benefits the public greater so I still remain the ardent enthusiast and cheer them as they figure it out.

Agile companies can react quickly to decisions.
Immature companies make decisions too quickly.
Too bad maturity and agility don’t often co-exist.

Maybe, but at least they are holding firm to not caving to the dealership model. Maybe they will someday, but IMO, that will be a sad day. The US market AFAIK is still the only global market that forces by law auto manufacturers to sell through dealerships. This all started with Henry Ford striking the deal with emerging dealers when his company was going through similar growths.

I think the only way Tesla goes with traditional US dealerships is if they’re acquired by GM, Toyota, etc., and the people remaining from today’s Tesla are overruled. In other words, I’d say the odds we’ll see Teslas in traditional dealers are less than 10%.

One of the few reasonable, rational comments here. And you got (as I write this) -15 down-votes.

It looks like there is a concerted effort at Reeking Alpha or Yahoo Finance some other stock short-seller forum targeting this discussion thread for negative comments, up-voting of other negative comments, and down-voting of the few reasonable comments.

I had some questions regarding the company’s management before. Now it’s just amateur hour over there. I’m sure this will help their stock price …

It was already beaten down some so they may get a break…but this is comical.

Wow, amazing. Whether or not to have stores should not be a decision that changes in two weeks. I give them credit for keeping the $35,000 M3, I thought for sure it was going up too. I don’t think that price will last much longer.

We already knew the decision to close stores was made and announced quite rapidly. Someone was citing statements from Tesla only two weeks earlier about plans for expanding their stores.

It’s good to see that Tesla can walk back the decision just as rapidly, in response to increasing demand. And how very, very strange that a rapid change in response to a change in the market is being characterized as a bad thing!

Being “agile” is a good thing… not the bad thing which so many comments here mis-characterize it!

I love how everyone sounds off like they 1) have all the company information, and 2) would somehow have all the magical answers were they put in charge. Regardless of whether you support Tesla or hate the company, the company is trying to walk point man in a space no company has ever been before. The only company that’s full BEV, attempting to forecast global demand, disrupt two entire curmudgeon industries, build out infrastructure WHILE building vehicles, respond to competition, deal with relentless pressure from shorters, stockholders, naysayers-o-rama, a headcase CEO, and develop new products and technology to stay ahead- all with the instant reaction from social media, which no startups until this generation ever had to deal with. Folks here act like Tesla has all the tea leaves, and they simply switch on a dime because… they wanna draw negative press??

EVERY move Tesla makes is gonna be wrong. That’s where we’re at.

The move to close most stores was widely considered wrong, even by Tesla bulls because online sales are not considered to work very well for a complex product like cars. I think it’s fair to make that observation even without pretending to have all the answers. But to what question was the low price/online only business model supposed to be the answer? That question might be: how to solve the problem that Model 3 doesn’t sell in the numbers we hoped for. That question now remains unresolved, clearly the price cut didn’t trigger a sales tsunami. One of the biggest demand inhibitor might be the perennial negative media coverage Tesla is getting. That one isn’t easy to solve as all reporters have long since learned that negative headlines about Tesla generate a lot of traffic.

Yeah Chris, but add the store closure decision to the ever-growing list of what is considered wrong moves by Tesla. Every move they make is considered wrong, if you don’t believe me, go read 90% of the financial headlines today. Or any day in the last year.

Like I said all reporters have long since learned that negative headlines about Tesla generate a lot of traffic so I think Tesla will have to find a way to survive in an extremely hostile environment. That’s not going to be easy and maybe it’s impossible for a manufacturing company that’s highly dependent on consumer confidence in its continued existence. Maybe the picture here is of drowning mainstream media dragging Tesla down with them in their desperate search for clicks. It’s all pretty ugly.

The media coverage narrative has shifted over this last year from one of darling tech company coverage to failing car company focus. CNN had up for a week recently an entire section called “Tesla Troubles” with multiple negative articles.

Today they have a headline with picture that reads “Tesla is raising prices after backtracking on store closures”. No where in the article does it state for the casual reader that Tesla just recently slashed prices of the S and X by far more than the 3% they will be raising them again. The narrative is they are going down in flames because they are having to raise prices on all their cars to stay in business.

Yep it’s ugly. I would personally celebrate the day CNN goes out of business.

Are you a Trumper?

What does that have to do with anything? Not liking CNN = voted for Trump.

Well, at least we know where folks stand.

Usually those who hate CNN but don’t mention any problem with state-run TV AKA Fox news that usually means Trump has brainwashed them with his fake news gibberish

I’d say there is a very strong overlap there. I certainly don’t like how CNN has gone from being a mostly hard news network to a mostly “infotainment” network, but to wish it would cease operating is a pretty extreme opinion, and certainly fits with how the Orange Don keeps attacking the media in general, and CNN by name, as an “enemy of the people”. The Orange Don is certainly following in the footsteps of Adolph Hitler, isn’t he?

It’s also kind of interesting how he tried to kill that Time Warner merger because they own CNN and they say mean things about him but the fox merger was green-lighted very quickly…..it’s almost as if he thinks things like that should be run based on simply whether they’re on his side or not and not by the rule of law….

It’s almost like Elon is too stupid to know that you can’t just keep handing people ammo…

The reason is a headline is when the company lowers prices and then raises them in less than a month it does smack of something being wrong. The slashing of prices on the model S and X can also easily be interpreted as bad news because usually when demand is strong for a product the company doesn’t feel a need to cut prices, especially if it’s a company that is cash-strapped more than many and is simultaneously trying to fund massive expansion. If you think about it other than softening demand why would they lower prices when they have all these factories are trying to build?

Exactly. And sadly, we’re seeing the same tunnel vision in most of the comments here today. 🙁

“Common sense” seems to be all too uncommon in most comments in this discussion.

Agreed. Admittedly, I’ve been beating this drum a lot lately, because I think it’s important that this is constantly remembered, because it’s easy to buy into a relentless negative hype machine. That’s the reason they do it.

It’s almost like Elon is a lot more interested in running a growing company, and responding swiftly to changes in market conditions, than he is in letting Tesla bashing or short-term thinking control his actions.

Go Elon!

@Chris O: according to Tesla’s own sales data, nearly 75% of all sales took place online. Nearly as many took place without a test drive.

Their notion of going 100% online for actual sales, and only about 10% for brick-and-mortar relations, was not, and is not, an unreasonable business decision. If the traffic isn’t there, then why pay those people and open up those costly locations??

so is there accurate data as to how many people who ordered online did or did not go to a Tesla store beforehand to either look over a car, talk to a employee or take a test drive? Even if I was inclined to order it online I would still want to go kick the old proverbial tires

Tesla would have the data. The dealership laws have made them try a number of different options.

Respectfully disagree.

There is no way the twitchiness we see from Tesla is normal or a good thing. Expecting them to “act and dress like what they want to be some day” (as we adults so often say to teenagers) is not demanding they have “all the tea leaves”. With every move like this store closure/non-closure nonsense, Tesla looks more like a company run by a single man who has no one around him he’s listen to who is willing and able to say, “No, this is a bad idea.”

Closing all those stores would have been a stupendously bad idea. He’s selling cars, not shoes. For a lot of consumers their current model and number of stores is already a hurdle simply because it’s different from how they’ve bought cars for decades.

Musk and Tesla have already done mind blowing things and made a whole lot of analysts look like idiots. This is terrific and it’s exactly what we needed to push the rEVolution worldwide and especially in the US. But they could do better yet if they appeared to be less twitchy.

I don’t disagree with you Lou. My point is Tesla is absolutely analyzed to death, many of their decisions I don’t think are necessarily any different than any other company would make were they in Tesla’s uncharted situation- except for the fact that those different companies aren’t scrutinized to the point of sheer obsession. Tesla doesn’t have the luxury of trying something out without having the results potentially artificially affected by unrelated forces, who absolutely want to see Tesla destroyed and gone. Example- “Tesla lowers Model 3 price due to softening demand.” Now, “Tesla raises Model 3 prices due to softening demand.” They can’t win. Now, I’m not excusing every decision or action as a good thing (like you mention), I’m merely saying that Tesla is in a very foreign space and I honestly believe they’re trying to spin as many plates as possible and it obviously doesn’t always work out as planned. I also believe they’re VERY aware that every decision they make will have a mostly negative reaction/response soon after.

But that cuts in both directions. I’ve read many instances where Tesla fans have said the $35,000 model 3 is in around because demand for $60,000 versions is basically unlimited. Then when Tesla announces lower prices fans don’t interpret it like softening demand they interpreted as Elon wanting to complete the mission. Well if that’s the case why did he then raise prices when it that counter the mission? It could easily be interpreted as softening demand cause them to lower prices thinking that’ll trigger volume and then when that doesn’t happen they raised prices to try to keep profit levels up

Right, but Tesla fans aren’t the financial “analysts.” And the “analysts” are the only ones that the financial market puts out there as gospel. There’s a BIG difference. If the media put out a 50/50 mix, I’d be more inclined to say that the financial market isn’t skewed in one direction.

Well said! For any other auto maker, running a temporary price reduction for 2 or 3 models during a couple of months when sales were off would be seen as normal. Yet here, only because it’s Tesla doing that, some with their knives sharpened are trying to stick it to Tesla’s public image.

One has to wonder at the motives for so many negative comments here. How many of the negative comments here are a result of misperception or a failure to understand the market, and how many are a result of outright attempts to damage Tesla’s public image?

@Lou Grinzo: Tesla’s own sales data said that about 75% of all sales took place on line, and about as many never had a test drive. Therefore, it is perfectly reasonable for them to question their brick-and-mortar presence in terms of cost. If those stores are not bringing in enough sales, then why spend all that money? It seems silly, really, to criticize them for accurately responding to their own data!

By contrast, I do agree that the all-or-none approach, followed two weeks later by, “well, that isn’t going to work, we’ve decided to keep some open”, is disconcerting.

However, I have no inside information. Was it in reaction to bad press? Was it in reaction to stock value? Did middle-management push back hard?

When Tesla sales data told them it was a good idea to drop physical presence to about 10%, while moving the actual sales transactions to 100% online, and then we see a significant shift such a short time later, then that means that one or more critical factors cropped up – things that they wouldn’t necessarily have been able to predict, like bad press and stock price volatility.

Tesla said 82% of purchases didn’t involve a test drive. I hoped that Tesla would find some way to continue to offer test drives, perhaps thru the Tesla Service Centers, but the idea that no test drives would have been a disaster for Tesla is people pretty firmly ignoring the actual evidence.

And an astonishing amount of people ignoring actual evidence is, unfortunately, seen in most of the comments here today.

“Closing all those stores would have been a stupendously bad idea.”

Amazingly enough, I don’t believe that you are in a better position than Elon to know that. So many, many people posting comments here today are writing as if closing most of the Tesla Stores was a bad idea and that Tesla reversed course only after realizing that.

A more objective observation of the price changes (and plans for store closures) over the past several weeks indicates, at least to me, that Tesla is responding to changes in market conditions. The reduction (and soon end) of the Federal tax credit isn’t a result of “chaos” or poor planning at Tesla, but it certainly does create instability in the market. Coupled with the normal drop in demand for cars in January/February, it shouldn’t be any surprise that Tesla dropped prices to boost demand. Nor — despite the dozens of astonishingly ill-informed comments posted in this very thread — should it come as any surprise that Tesla is raising prices now that demand is significantly increasing again.

“I love how everyone sounds off like they 1) have all the company information”

I think it is pretty obvious we don’t have all the info. Infact I think it’s obvious that the people running the company don’t have all the info. The question is do they have any?

Contrary to what seems to be the premise of, sadly, most of the comments posted here today, I’m sure Tesla knows what they’re doing far better than nearly all of the self-appointed armchair analysts who have posted negative comments in reaction to the very positive news about increased demand for Tesla’s cars allowing Tesla to (a) raise prices and (b) keep most of its stores open.

It’s mind-boggling that so many people are reacting to this very good news as if its bad! 😯

Depends on which side of the equation you fall. In the last month, Tesla has released the long awaited $35k Model 3. And they released their V3 Supercharger. And they’ve now started shipping thousands of Model 3’s to China and Europe. And they’ve paid off a $1 billion bond. And they’ve secured financing for Gigafactory China, along with hitting construction timelines on that project. And still this whole time continued adding Supercharging locations globally, as well as increasing the charging speed of the entire Supercharging network from 120 kWh up to 145 kWh. They’ve released more software updates for their entire network of cars and are releasing new Autopilot updates soon. And they’ve had issues with customer service. Elon is still Elon. They’ve had difficulty pricing their products. They’re still battling the SEC and shorters. They still have growing pains due to daily/weekly/monthly changing public perception, markets, bulls, bears, elephants, donkeys, etc, ever changing material prices, tariff question marks, and on, and on. So there you go, pick a side. By the way, what other car company on the face of the earth is fully BEV, and is pushing the BEV model as aggressively forward as Tesla?

Absolutely. It is a very strange move, but so far, they’ve been hitting the nail on the head, as the old saying goes. I trust them to keep it up.

Thank you! One of the few reasonable, thoughtful responses to this good news… which so many comments here are responding to as if it’s bad news!

The trolls are out in force today… as shown by the (as I write this) -15 down-votes to your very welcome and thoughtful comment.

Do nothing: Tesla is going bankrupt
Do something: Tesla is going bankrupt
Hire people: Tesla is going bankrupt
Lay off people: Tesla is going bankrupt
Lower prices: Tesla is going bankrupt
Raise prices: Tesla is going bankrupt

The negative headlines get all the clicks so anything Tesla does will be spun in the worst possible way by most media. This time however the negative press is mostly of Tesla’s own making as even the bulls reacted bewildered to Tesla’s sudden change in business model.

I don’t think they are going bankrupt. The brand and cars are worth something now. If the stock gets cheap enough, someone will buy and I don’t think that’ll wait until the bankruptcy auction.

Now, should Tesla ever have been worth more than Ford or GM? No.

Another Euro point of view

Agreed.

For someone to take over Tesla, they have to assume their debt, so even if stock is zero still it could cost $10b-20b to buy the company. That is assuming stock is worthless.

This is a factual statement, not an opinion. So why someone would vote down my post unless he/she is clueless or biased.

Because you made a statement that was based on the presumption Tesla was going belly up. Fanbois don’t like that kind of talk. 😉

Anyone who wants to see a growing and highly visible American manufacturer of “green” tech succeed doesn’t like that kind of talk. Publicly predicting failure is often a deliberate attempt to make failure happen, and that’s the motive for all too many comments here today.
(◣_◢)

I did not predict failure. I stated a fact that the company has assets and liabilities, and when someone buys the company they assume both. So it takes $10-$20b to buy Tesla even if share price is zero. At current market cap it takes $60b plus the premium.

Eventually what makes the company to survive is their execution and management, macro economics, and regulatory environment. Blaming someone who posts here is illogical.

I’m not saying it going bankrupt but what is the rational explanation for lowering prices than raising them again within a few weeks?

I doubt he survived as CEO the rest of the year. SEC is going to smack him hard eventually.

Another Euro point of view

IMO Elon is out as CEO of Tesla before year-end, possibly from his own decision.

Uh huh. Yeah, Elon Musk is a big fan of losing. I’m sure you’re absolutely right..

Yeah, we have a troll-fest going on here with shorters like A-Euro, MadBro and other long-time serial anti-Tesla trolls popping in with their wet dream fantasies.

Meanwhile and despite the flawed messaging at times, the real fundamentals of Tesla are getting better all the time as the numbers come in from European sales of Model 3 and in 3 days the unveiling of the much anticipated Model Y.

Yeah, it seems like we haven’t see an anti-Tesla troll-fest like this for some months. My guess is that some troll on Reeking Alpha or Yahoo Finance posted a call for all the TSLA short-sellers to come and carpet bomb this thread, and up-vote the unfairly negative comments and down-vote the reasonable ones.

Well whenever Trump goes bankrupt he declares it an astounding victory. He could always leave if he really thinks it’s a sinking ship and then blame the shorts, the media, the rest of the world for being way too stupid and not realizing the Wonder…

Lol… The Tesla naysayers throw tomatoes at Telsa for too aggressively closing down Yesla Stores then when Tesla announces its going to be less aggressive on that the Tesla naysayers beat up Tesla for make a change … as Tesla continues to dominate the EV market the Tesla naysayers become more desperate.

Ironically the traditional franchise dealer networks benefit by Tesla slowing down the transition to 100% online sales.

Intended or not by Tesla, the initial announcement by Tesla to close all Tesla Stores (and convert several to Tesla Galleries”) likely resulted in the local state dealer associations rethinking the wisdom of their challenge Tesla Stores being allowed to operate in their state.

continued….

…. dealer associations are likely rethinking the wisdom of their challenging Tesla Stores being allowed to operate in their state.

Does it benefit the traditional franchise dealer networks if Tesla proves 100% online sales works?… it does not.

The problem with Tesla saying they are now not going to close most of the store is it appears the decision to close most of the stores was not well thought out. Tesla could have avoiding this conversation if they would have just stated from the beginning that they are going to close less profitable store – period. That would have gave them room to increase/decrease the number of stores based on performance. Now we have no idea what the decision is based on.

@theflew said: “The problem with Tesla saying they are now not going to close most of the store is it appears the decision to close most of the stores was not well thought out…”
——————

Tesla initially messaging hardcore full-speed ahead 100% online sales (with help of network of Tesla “Galleries”) was basically Tesla saying their end-point goal is no need for Tesla “Stores”.

Franchise dealer state associations now knows the legal/lobby $$$ they are spending is towards creating a condition which Tesla ultimately views as preferable… no Tesla Stores.

NADA also must be asking themselves why they are spending resources to achieve an outcome Tesla is striving to attain. Think about that.

How Tesla went about the “Stores Closing” message has turned out to be brilliant… IMHO.

“The problem with Tesla saying they are now not going to close most of the store is it appears the decision to close most of the stores was not well thought out.”

Only if you don’t apply critical thinking. With a bit more thought, perhaps you might come to the realization that recent moves such as cutting prices and Tesla deciding to close its Stores, were rational responses to falling domestic demand. Then you might think a bit more and realize that the rapid rise in demand following the addition of SR and SR+ trim levels for the TM3, coupled with the end of the annual January/February auto sale doldrums, has lead to Tesla raising prices more or less back to where they were, and the decision to hold off on closing most Tesla Stores.

All Tesla vehicles (except base Model 3) are about 3% less expensive for just one more week.

This is starting to look like a one week Blue Light Special!

I guarantee you the $35k base Model 3 price is not long for the world.

Just like when you guaranteed a short month ago that the $35k Model 3 would never happen? Got it!

Hey, you should be a financial analyst!

Wow, took the words right out of my keyboard!

MadBro, it’s going to be a very long time before you live down the hundreds, if not thousands, of times you predicted that Tesla would never sell the Model 3 for $35,000.

Of course it will! Very few people are going to buy, so it won’t be a major strain to their bottom line. Base trims are not common, even among cheap vehicles, in consumer sales. If people really want a Tesla, they will stretch to buy the $35k. Musk promised, and he can’t back down from that for all the world.

Yes it’s basically just good publicity, he can say he made good on the promise.

Good for people that now won’t lose their jobs.

However this is the exact environment that causes the better employees to pop smoke degrading the employee pool.

Love poppin’ smoke- and thank you for your service! 🙂

I bet they lost part of their job motivation though. You just can’t flip flop on policy on a whim like that.

The decision-makers over at Tesla are smoking weed again. It’s a great company but this is childish behavior!

3% price hike, just like that. I guess if you love Tesla, you won’t mind.

(⌐■_■) Trollnonymous

Almost like the Feds raising rates 4 times in a year!!!!

Tesla recently slashed prices about 3% in response to temporarily lower demand; it’s raised prices back up in response to now higher demand.

Hafta wonder what kind of person thinks that is a “bad thing”.

(⌐■_■) Trollnonymous

Well that’s just dumb.
Didn’t they just announce the Base model price? And now they’re going to increase the price?

Bait ans switch?
Sounds like a Stealership tactic to me…………..LMAO.

Base model is not going up.

Yup. Sure are a lotta comments here today ignoring the actual facts, and pretty completely.

I’m still confused with the large drop in Tesla vehicles in China a week ago. Will those cars get a 3% increase in price.
I was also surprised that many Chinese owners were unhappy about the lower price.

When you buy a new Tesla, then see the price of the exact same car you just bought drop $40-50k overnight, you can probably figure out why there were owners not very pleased with Tesla in China.

Very few people buy a car as an investment and when they do, they rarely if ever drive them. If you bought a Tesla in the past 6 years and drove it, the value has and will go continue to go down. If you bought it and store it for 50 years, it might be worth more than you paid for it, for example a ’69 Ford Mustang. On the other hand it could be more like a ’70 AMC Gremlin, worthless. It’s always hard to know the future. If you made a deal with Tesla and they delivered the car you wanted at the price you agreed on, just enjoy driving it like you did when you got it. The acceleration is awesome! Just my take on price changes.

For the Chinese consumer, it’s not an investment. It’s status. So, yeah, when a price drops by such staggering amounts, then it will be a major turnoff, and the ones that bought before the price change feel like they have egg on their face. It was a VERY bad move for Tesla in China.

Thank goodness you’re not an executive at Tesla! And thank goodness that those who are, understand marketing and pricing better than you.

At least Bolts have retained their value, though, right?

On this point he’s definitely a hypocrite…Bolt leases vary in discounts from month to month for crying out loud…and he complains about Tesla price swings…lol.

Another attempt to get more sales for the current quarter.

What they need to do is to increase prices by 20% and become a smaller company. Eventually they have to write down their debt and accept the reality.

And this very public announcing of increased prices to pressure you to buy now is getting very old and has a very negative side effect of Tesla being a very unstable company that can’t seem to make up its mind or is being Micro Managed by someone (Elon) which is hurting credibility….make up your mind Tesla or better yet just quietly juggle the prices so and quit making a specticle of your instability, you don’t want to keep pissing off new owners who a day later see they paid way to much for their car.

Legacy auto makers running a temporary price reduction to boost sales: Good marketing.

Tesla running a temporary price reduction to boost sales: Signs of “Tesla being a very unstable company”.

Or… maybe not. 🙄

Was Elon simply in need of some Twitter attention one day?

What about test drives? The big problem with shutting the stores is that you can’t test drive a car, will they be bring back test drives or are the stores just displays?

Tesla never said test drives were going away. But people here certainly jumped to that conclusion awfully fast! (Admittedly that was my first reaction, but it didn’t take long for me to re-think that.)

What a circus!

Again, there is a at least one significant and very straightforward reason for this: they can’t just terminate their leases on a dime. The buildings and/or land on which the stores are built are primarily leases. Some of these leases just started, and they probably have 3-, 5- yr terms, maybe more in some places.

The true outrage is what they’ve been doing to their sales teams since the winter began! There’s no point in having stores if you slashed their morale into macabre party streamers.

How many times are you gonna repeat that nonsense? Tesla never said it was gonna close all the Stores at once; the press release quite clearly said it would be happening over a number of months.

The idea that Tesla would put itself in the position of being forced to pay penalties for hundreds of early lease terminations is a result of your lack of critical thinking… which you are trying to project on Tesla! 🙄

Uh, no. You need to straighten your thinking cap.

They were pushing for new stores, and had opened new stores, as late as February! The announcement then came out that they were going to close almost ALL stores (how long it takes is irrelevant to the issue at hand).

This new announcement shows a change of goals: they are NOT going to close almost all stores – they are going to keep about half of them open indefinitely. That is NOT the same thing as, “oh we know it’ll take a while” – no. Read the press releases again.

Low demand??? The lower prices and trims have been announced for less than two weeks!! No change in sales could possibly have any bearing on this recent decision.

This does show that the SEC is quite right to crack down on this nonsense of Tweet first, think later, approach.

“The lower prices and trims have been announced for less than two weeks!! No change in sales could possibly have any bearing on this recent decision.”

Wut? That’s obviously the main reason, perhaps the only reason, why Tesla reversed course on closing most of its Stores.

Anybody who thinks Tesla reversed course because some people in the media were saying mean things about them, must be on crack! Tesla isn’t going to continue a losing business strategy just to placate the Nattering Nabobs of Negativity.

It’s nowhere near that simple. Something(s) caused them to change tack on their retail strategy, and they raised prices to cover their ass. They even said so, for whatever that’s worth. Read the press release again.

Well, give them credit that they now laid the groundwork for the excuse for not being profitable Q1

They already did that when they said they were offering the lower trims and announced the prices. This new announcement comes out of left field a little bit.

“Apparently, the initial strategy isn’t going to work?”

That’s a rather skewed, negative way to interpret the change in plans, innit?

How about: “Responding to higher than expected demand for the SR+ trim level, Tesla has decided to raise prices and leave many or most of its Stores open.” Now, isn’t that very likely to be a more accurate reflection of what motivated Tesla to change plans?

No, because publicly Tesla has stated they will now only realize 1/2 the cost savings they originally projected, I think you fail to understand they are desperately seeking cost savings, not so much anything else.

Expect to see them try and raise charging rates again soon too.

The thing I want most from Tesla is to bring back the Bright Silver paint option~