Twitter Facebook LinkedIn Flipboard 0 It’s no secret that electric car maker Tesla has traveled a rocky road in the last few months. The company missed ship dates for its Model 3 last year. Elon Musk’s battle with the Securities and Exchange Commission has also stirred controversy. It wasn’t exactly surprising to hear the automaker was planning to close some of its Tesla stores. The move caused controversy, particularly among employees concerned about their jobs. Early Monday morning, employees received an email claiming an about-face on store closures. Some Tesla Stores to Reopen Musk’s email was followed by a public blog post. Both announced that 10 percent of the shuttered Tesla stores would remain closed. Another 20 percent of the locations were under review. One reason for the reversal of the store closure decision could be the threat of lawsuits. For most of the closed locations, Tesla failed to give notice to landlords. Most of its lease agreements didn’t contain cancellation clauses. As a result, some speculated that the company could face billions in lawsuits. Same Store, Reduced Workforces The decision to close retail locations seems to be a response to falling sales of Tesla cars. Even in the decision to reopen some of these locations, the concern about costs is plain. Company communications state reopened stores will have a “reduced Tesla crew.” Otherwise, there won’t be changes to the way a Tesla store currently operates. Tesla’s sales are entirely online, and the primary purpose of stores is to raise brand awareness. The Tesla crew walks potential owners through the online purchasing process. Prices Increasing Mid-March Tesla also announced it would be increasing the price of Tesla cars worldwide. The increase will be about three percent on most models. The Tesla Model 3, with a base model price tag of $35,000, isn’t subject to the price increase. The price increase is set to take effect next week, giving potential buyers a chance to buy at a lower price. More Erratic Behavior This latest communication seems to reflect internal disarray at the OEM. Senior management resignations and Musk’s battle with the SEC over his tweets haven’t done the car manufacturer any favors. Musk has made no secret of his animosity for the Securities and Exchange Commission. He declared in a 60 Minutes interview that he “does not respect the SEC.” The text of the interview was made available using audio transcription. Monday was also the deadline for Musk to explain why he shouldn’t be held in contempt of court. A Sign of Things to Come? It’s unclear if reopening Tesla stores will be enough to turn around sales. It may also not be enough to restore Tesla’s public reputation. What is clear is that there’s a long road ahead for the embattled auto manufacturer. Twitter Tweet Facebook Share Email This article was written for Business 2 Community by Kane Pepi.Learn how to publish your content on B2C Author: Kane Pepi Kane Pepi is an experienced financial and cryptocurrency writer with over 2,000+ published articles, guides, and market insights in the public domain. Expert niche subjects include asset valuation and analysis, portfolio management, and the prevention of financial crime. Kane is particularly skilled in explaining complex financial topics in a user-friendlyView full profile ›More by this author:VoIP Basics: Everything Beginners Should Know!Bitcoin Investment, Trading & Mining: The Ultimate Guide for BeginnersIs This a Better Way to Set Your 2020 Goals and Resolutions?