Tesla Scales Back On Store Closures And Raise Prices

Strategic backpedaling never a a good sign....especially within a month. Creates doubt about the strength of management in the minds of investors and employees.

Not only investors and employees but what about the customers? At least they have an incentive to buy now before the prices go up, pulling in cash to Tesla as those units get delivered. Is March 18th deliberate in order to increase the end of quarter deliveries=sales?

If it was deliberate for sales they would go until March 31st.

@sjd The customer has to take possession of the car before the end of the month in order to count as a sale. The price change on the 18th makes it possible to deliver a vehicle in time to get sales credits. It's an old marketing ploy to increase prices like this to pull orders into a time period where you need the revenue. Buy it now before the price increase.

Actually that's a good point...

A small glitch arose after the plan was initially announced. Their landlords won't let Tesla out of their lease commitments. Tesla is on the hook for over a billion dollars going forward.

Did Tesla nor do any due diligence before announcement to close stores? It seems like amateur hour there.

This is a bit confusing. Demand is obviously good and the base Model 3 is sold out for the next month already in the US, perhaps they realized there was enough demand to slightly raise prices and they are using the stores as an excuse?

Demand is not good and Elon said they will not produce the cheap 3 in significant numbers until summer. Sold out next month? Now you are making things up.

Nope, check the delivery timeframes. I know around as many people that have ordered the base or base+ Model 3 this week as those that already have the 3. A crapton of orders happened with the price drop.

Actually, that's a good point...

Wrong thread lol. I wish I knew since I do have shares.

It is time for Tesla to be run like a real corporation, and not a startup. There is real competition coming relatively soon, Tesla has a strong product and brand, but if they continue to operate in their current manner they will fail.

I first looked at a Tesla Model 3 about 3 months ago.

Since then they have lowered prices twice, announced that they are moving to an all online model, and are now backpedaling from that.

If this were a blender I was looking at I wouldn't really care. But for a significant purchase like a car I need greater assurance that the company I am potentially buying from is 1) Stable, 2) Likely to be around in a few years and 3) Not making it up as they go along.

#AMEN

The lack of coherence in the business plan is very troubling

Of course they're keeping some stores. Without a showroom for customers to see, feel, and touch actual cars, I bet their sales would plummet.

This is a bonehead business move. And it will prove costly.