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Tesla To Lift Vehicle Prices By About 3% On Average

Luxury automaker Tesla (TSLA), in a blog post on Sunday, announced that it will need to raise vehicle prices by about 3% on average worldwide as a result of keeping significantly more stores open.

The company last month had announced that it would be winding down many of its stores and move to online-only sales in order to pass the savings along to customers.

In its latest update on stores and pricing, the company said it has decided, following close evaluation, to keep significantly more stores open than previously announced.

Tesla said it will only close about half as many stores, but the cost savings are therefore only about half.

The company said it will continue its evaluation of stores. Tesla recently closed 10% of sales locations. But, 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.

The company noted that potential Tesla owners will have a week to place their order before prices rise, so current prices are valid until March 18. 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.

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