However, on March 10, in a blog post titled Update on Tesla Stores and Prices, the company, led by high-tech maverick Elon Musk, stated: "Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have made a decision to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months".
A small number of vehicles will be kept in inventory for customers who wish to drive away with a Tesla immediately. Price increases will only apply to more expensive Model 3, Model S, and Model X vehicles.
Lawyers for Tesla chief Elon Musk on Monday argued that USA regulators overstepped their bounds by calling for him to be held in contempt for a tweet.
However, amid recent store closures and related staffing cuts, Tesla announced on Monday that it has made a decision to reopen some stores that are in high visibility areas.
Musk on February 19 tweeted to his more than 24 million Twitter followers that Tesla would make around 500,000 cars in 2019.
Tesla has cut thousands of employees since the start of the year as the carmaker continues to overhaul its operations to hit profitability. As a result, Tesla has announced that it will once again adjust its pricing to reflect the additional costs of running retail operations. That tweet, the SEC argued, violated a September fraud settlement barring Musk from sharing material information about Tesla on social media without the company's pre-approval. The company says it still plans to offer buyers the ability to return purchased vehicles at no cost after a seven-day or 1,000 mile test drive. Most of Tesla's leases didn't have cancellation clauses, either, leaving the company exposed to potential lawsuits.More news: Donald Trump calls Democrats 'an anti-Jewish' party
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Shares of the company, among Wall Street's most volatile in recent months, were roughly flat in early trading on Monday.
The company said it would await the results of a further review on the usefulness of physical locations, and only cut the original price of the auto be "about 3%".
On Feb. 28, the company said shifting to online sales would allow it to lower all vehicle prices by an average of 6 percent, including its higher-end Model S and Model X. At the time, Musk also walked back the company's guidance that it would be profitable in all future quarters, saying it would post a loss in the first quarter of this year.
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Tesla spokeswoman Emily Findlay also said there is nothing more to add beyond what the blog post had mentioned.