Tesla announces more stores will remain open but vehicle prices will rise

FREMONT, Calif. (KGO) -- Tesla says it is raising prices on most models as a result of keeping more stores open than originally planned.

This announcement came in a blog post overnight.

Tesla says it's re-evaluating its decision from last month about closing many stores and moving to online-only sales. The hope was they could pass along the savings to customers, but now they estimate they will only close about half as many stores. As a result of that decision, Tesla says it will be raising vehicle prices about 3 percent on average worldwide, but they're giving you a week to place an order before prices rise.

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Tech Analyst and Creative Strategies President, Tim Bajerin, says Tesla's move away from showrooms was too fast for today's consumers.

"There's a lot of pressure on them not only to deliver but also to become profitable. And they're still a ways from doing that. I think though that these changes are going to at least help," said Bajerin.

Tesla says current prices are valid until March 18. The $35,000 Model 3 will not see a price increase, just the more expensive Model 3s, Model S and X.

All sales worldwide will still be online, but the stores will allow you to come in and check out the vehicles.

Tesla offers a return policy of a 1,000 miles or 7 days, whichever comes first.

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