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Tesla Raises Prices as Musk Backtracks on Closing Stores

  • Cost increase to average about 3%; $35,000 Model 3 unaffected
  • CEO partially reverses decision that blindsided investors
Tesla Raises Prices
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Elon Musk is backtracking from a jarring change in Tesla Inc.’s retailing strategy, keeping many of the company’s stores open and raising the prices of its electric cars as a result.

Tesla will increase the cost of its vehicles by an average of about 3 percent after rethinking a plan announced just 10 days earlier to wind down all but a small number of its stores. In a blog post, the company said about half the locations it was planning to close will stay open.