The company did emphasize that all sales would still be online only-salespeople will show customers how to order vehicles via an app.
Tesla opted to close the "stores that didn't invite the natural foot traffic our stores have always been designed for".
Ten days after Tesla said that it would close nearly all of its stores, the carmaker has reversed its decision and will be raising the price of its electric vehicles instead.
Tesla didn't provide a reason for the U-turn other than saying it followed a two-week evaluation of all the company's retail locations.
Purchases will still be done online, with Tesla store sales associates showing prospects how to purchase using the mobile app. Tesla adds that the seven day/1,000 mile return policy should eliminate the need for test drives in most cases, but "cars will still be available for test drives at stores at the potential Tesla owner's request".
Tesla has reversed its decision to close its brick-and-mortar stores and take sales online only.
As a result of keeping these additional stores open the electric carmaker has stated that prices are expected to rise by "about three per cent on average worldwide". The company will continue to offer the vehicle at that price point and will increase the cost of other variants of the sedan.
The recently unveiled $35,000 Model 3 - Tesla's cheapest vehicle yet - will not be affected by the price hike. Pricing will increase by about 3% globally. In a blog post, the company said about half the locations it was planning to close will stay open.
Tesla's plan to shutter most of its physical stores was met with resistance, most notably from landlords.
Separately, a NY attorney on Monday announced that Tesla's former chief of security has filed a whistleblower complaint with the U.S. Securities and Exchange Commission. A further 20% of its retail stores will remain open, but will be subject to increased scrutiny as the company decides if they will fall under the knife or not in the coming months.
Separately, Bloomberg reported on Monday that Tesla is in discussions with Chinese battery maker Contemporary Amperex Technology Co Ltd on a deal for the production of rechargeable batteries for the Model 3.