Tesla Inc. stopped online sales of the $35,000 base version of its Model 3 car weeks after introducing it, the latest shift in sales tactics as the company struggles to deliver long-promised affordability and avoid losing money.
The company’s TSLA, -2.77% announcement late Thursday said customers can still order the $35,000 version of the car by telephone or in its network of stores. But it effectively raises the minimum price of the Model 3 by nearly 13% for online shoppers, after announcing in late February that it was shifting its sales to the internet as it began making the $35,000 “standard” version available for order.
In a blog post Thursday, Tesla said the move was to “simplify our production operations to better optimize cost, minimize complexity and streamline operations.”
Read: Tesla stock falls after report that Gigafactory expansion is on hold
The announcement marked the fourth change to the compact car’s starting price this year, and followed worse-than-expected deliveries of Tesla vehicles in the first quarter, which raised questions among investors about demand for the company’s electric vehicles.
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