Tesla backtracks on price drop, will raise prices on most models again

Less than two weeks after announcing a 6 percent price drop across its lineup facilitated by a switch to online sales and the closure of many of its retail locations, Tesla is raising prices again and keeping the lights on in more of the stores than expected.

The automaker said on Sunday that prices will rise by an average of 3 percent, except for on the recently launched $35,000 Model 3, which will not be changed. The new prices go into effect on March 18.

The move comes after an evaluation that led the company to decide to shutter less than half of the brick and mortar outlets worldwide than planned. However, 20 percent of the stores remain under review and could be closed in the coming months. Tesla also said that, despite the switch to online ordering and sales, several of the outlets will keep a supply of vehicles on hand for immediate delivery.

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Following the initial price adjustment, which ran into the tens of thousands of dollars on some models, a number of current Tesla owners voiced their concerns that the change would reduce the resale value of their vehicles.

Tesla has scheduled the reveal of its next vehicle, the Model Y, on March 14. The small SUV is expected to go on sale in late 2020.