Tesla to raise prices and keep more stores open

Tesla is increasing prices of its electric cars after scaling back a store closure programme.

The carmaker said the 3% price rise would not apply to the new mid-market Model 3.

Earlier this month Tesla said it would close an unspecified number of stores to fund a cut in the price of the Model 3 in the US to $35,000 (£26,400).

It will now close “about half as many” stores – making half the cost savings.

The carmaker, founded by Elon Musk, said that keeping more stores open would require a rise in vehicle prices by about 3% on average worldwide.

“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” the company said.

It is still planning to conduct its sales online and said that buyers in stores will be shown how to order a Tesla on their phone, a process which Tesla says will take just a few minutes.