The firm said: "Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have chose to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months".
But in an update the company said that over the past two weeks it had been "closely evaluating every single Tesla retail location" and had "decided to keep significantly more stores open than previously announced". According to CNBC, which received a copy of the email, Musk wrote that the company would now be keeping many of its unclosed stores open, and would even reopen some of the now-shuttered locations. Physical stores will have a small selection for customers who want to test drive a vehicle or drive one off the lot immediately.
Some stores will keep a small inventory of cars on hand so purchasers can drive away in a new auto immediately. The only exception to the price hike will be the entry-level $35,000 Model 3; all other models, including higher-end versions of the Model 3, will be subject to the new pricing structure.
In January CEO Elon Musk announced that it is cutting down 7 percent of its 45,000-strong workforce.
In brief: Tesla has backtracked on plans to close virtually all its stores following a move to an online-only sales model.
Many Tesla sales employees were left wondering whether their stores - and jobs - would be among those immediately cut.
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The move made no sense to begin with because Tesla had spent millions fighting in courts and state legislatures trying to change laws that prevented companies from selling vehicles at their own stores, Ramsey said. "It makes it seem like Tesla is making decisions on the fly and reacting to very short-term factors".
"To backtrack from the online only strategy to us is a sign that may indicate Tesla did not see a positive reaction to orders post the announcement".
A Tesla spokesman declined to comment Monday beyond the company's statement.
Musk's lawyers face a Monday deadline to file a legal brief explaining to a NY federal judge why he shouldn't be held in contempt of court for an inaccurate February 19 tweet that could have influenced the company's stock price. The company also revised its earlier plan to close all physical retail stores. The company hasn't yet clarified why it partly reversed its initial decision, but Engadget has reached out for more information.
The blog post doesn't give a rationale for why Tesla is backpedaling.
However, the long-promised $US35,000 Model 3 will not be impacted by the increase.