On February 28th, Tesla announced that they would be closing most of their retail locations and moving to an online sales model in order to cut costs. In a blog post yesterday, Tesla has reversed course on that position somewhat, and will not only close a portion of their stores.
Some of their locations, around 10%, have already closed and Telsa said they would have closed anyway due to low foot traffic. Another 20% of locations are currently under review and depending on performance will be decided on in the next few months.
All sales will still remain online only, and customers who come into the stores will be shown how to order their vehicle online. The 1000 mile or 7 day return policy (minus the non-refundable delivery charge) will remain in effect for any customer who has doubts about their purchase. The remaining Tesla stores will have cars available for test drive and will keep a small number of vehicles in stock for people who want to take delivery immediately.
To compensate for this change in direction, Tesla will be raising prices by 3% on the more expensive trims of Model 3, and the Model S and Model X. The base Model 3 remains $35,000 plus $1,200 delivery charge. Current prices are valid until March 18th.