Tesla Inc. said that it would raise prices on a few of its electric vehicle models as the company changes some of its plans to close its stores in a shift to selling online only, the Wall Street Journal reported. The company said it had already closed 10 percent of its shops following last month’s announcement that it would shutter many of its stores. However, the company said today that it would reopen a few high-visibility locations though with a smaller number of employees. An additional 20 percent of store locations are under review. Tesla had 378 stores and services centers globally at the end of last year. In a February securities filing, Tesla said it has “various non-cancellable operating lease agreements,” and any effort by the company to terminate those leases could result in legal battles. The company has total lease obligations of $1.6 billion, with $1.1 billion due between this year and 2023, according to its securities filings. Read more. (Subscription required.)
Occupancy issues are at the heart of many significant retail cases, as detailed in the ABI publication Retail and Office Bankruptcy: Landlord/Tenant Rights, available at the ABI Store.