Tesla Reduces Prices of Model S and Model X; Significant Discounts for Plaid Variants

Tesla reduces prices of the Model S and Model X

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Tesla has cut the price tag on its luxury models — again. The Model S is now $89,990, down from $94,990. The Model X is $99,990, down a whopping $10,000. The Plaid version of both luxury vehicles is $109,990. The company has been slashing prices in 2023. As a result, the Model S Plaid is now $26,000 cheaper, and the Model X Plaid is $29,000 cheaper than at the start of January.

The Model 3 and Model Y prices were not changed; however, those vehicles have already had their prices reduced in 2023.

New Hardware is Coming

The latest price adjustment comes on the heels of Investor Day, where CEO Elon Musk said that demand for Tesla is infinite. Usually, if a product is in such demand, the company would not lower prices but rather increase them. But, there is a big change on the horizon for Tesla — Hardware 4.

HW4 has already appeared in a few Model S and Model X vehicle on the company’s parking lot in Fremont. The system is supposed to be significantly improved from HW3, including better cameras. These luxury vehicles don’t sell in the same volume as the Model 3 and Model Y, so it would make sense that Tesla is trying to lure buyers to clear out all the HW3 vehicles before launching HW4.

Lack of Demand?

Some skeptics will say this price cut is due to a lack of demand. We are entering the last month of the first quarter, and all companies are looking to pad their sales stats. However, as previously stated, these two models do not have the same sales volume as the less expensive models offer. Plus, at Investor Day, company executives spent much time explaining how Tesla reduces costs and finds more efficiency. Perhaps that is equally more affordable luxury models.

In January, Tao Lin, a Tesla Vice President in China, explained how price adjustments work. “The price adjustment reflects our better planning for the supply chain in a sense, and what level the vehicle cost will be, and then we make such adjustments according to this estimate." Lin explained, "The price adjustment of a product is actually a forecast of the company's cost changes in the next period of time. The biggest difference between 2023 and last year is that the epidemic has basically passed. We believe that the supply chain has returned to normal to a large extent, and there will be no such unpredictable shortages of materials as in previous years, which brought cost uncertainty."

Only time will tell if these price cuts will increase demand for Tesla's luxury vehicles, but for now, they offer an attractive option for those in the market for a high-end electric car.

Tesla Improves Wrap Services: Cuts Prices Drastically, Adds New Colors and Expands Availability

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After canceling the in-house wrap program for the Cybertruck last month, Tesla has reintroduced the program with a lot of changes. Let’s take a look at the original program, then we’ll dive into what’s changed.

Tesla began the wrap program for the Model 3 and Model Y in the fall of 2023. With the arrival of the Cybertruck, Tesla launched Matte Black and Satin White options for the Cybertruck and later added 11 more colors.

These are high-quality PPF (Paint Protection Film) wraps, which protect the paint in addition to changing the color of the vehicle. PPF is thicker, lasts longer, and is far superior to traditional vinyl wraps, but unfortunately, the service is only available if your vehicle is brand new.

When the program shuttered last month, many people were disappointed about the closing as it allowed owners to bundle the cost of the wrap service into the vehicle’s financing.

New Wrap Prices

First things first - the price of the wraps has dropped considerably, and Tesla does not appear to be using a different material - it is still PPF, not vinyl. These new prices are a lot more comparable to third-party offerings that normally use vinyl wraps.

Tesla initially offered 11 wrap colors, but that selection has now been reduced to eight per vehicle. Interestingly, the color options vary by model—Model 3 and Model Y owners have their own distinct palette. The Cybertruck also boasts its own unique set of colors, though unfortunately, the popular Satin White option is absent from its catalog.

Of course, the ever-popular Matte Black is still available, along with a fairly unique set of other vivid colors.

New Locations

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When the wrap program launched, it was limited to just three locations in California and one location in Texas. That meant that unless you were taking delivery at West Covina, Oceanside, Costa Mesa, or Santa Clara, you’d be unable to get a first-party wrap done by Tesla.

Now, under the new program, Tesla is offering wraps out of all the original locations and adding Seattle, Washington. What initially seemed like Tesla scaling back its wrap service has turned out to be to them making it more affordable and efficient.

New Purchases Only

For now, the wrap offers are still constrained to new vehicle purchases—you won’t be able to have Tesla wrap a vehicle that’s already been delivered. Paint damage and scuffs can impact the installation of PPF and require additional time to smooth out the vehicle surface.

Either way, with cheaper wrap options, Tesla is now directly competing against third-party wrap shops when it comes to wrapping vehicles in PPF. While it’s still a bit more expensive than you’d find elsewhere, it also comes with a level of care and precision from technicians intimately familiar with your vehicle.

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Tesla Increases Price of Model S; Starts Offering Free Lifetime Supercharging

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For the first time in quite a while, Tesla has increased the price of one of its vehicle offerings. The Model S Long Range and the Model S Plaid have both received a hefty price increase. However, not all is bad - as Tesla also added a new benefit for buyers.

Price Increase

The price increase for the Model S is $5,000 - currently only in the United States. This price increase will likely impact other markets, including Canada, in the coming days.

The Model S Long Range now starts at $79,990, while the Model S Plaid now starts at $94,990. The Model S and Model X now have the same starting price. Interestingly, that’s also the same pricing point for the Cybertruck AWD and Cyberbeast Trimotor non-Foundation Series. 

The vehicle configuration does not appear to have changed, so the new pricing is simply an increase rather than the addition or removal of features. Tesla previously cut the price of the Model S and Model X by 15% in 2023, so this could simply be an adjustment to ensure that the vehicle pricing stays in line with inflation and other factors.

Free Lifetime Supercharging

For those on the fence about ordering a Model S, Tesla has brought back Free Lifetime Supercharging when you order a new Model S on or after December 13, 2024. As always, Free Lifetime Supercharging is restricted to the buyer’s Tesla account and to that specific vehicle. It cannot be transferred to another vehicle or another owner after ownership transfer. It’s worth noting, that it also doesn’t exclude the owner from receiving Supercharger idle fees or congestion fees. There is currently no end date for this promotion.

There are currently no changes to the Model X, neither a price increase nor the addition of Lifetime Superchargering. However, when Tesla makes changes to one of their premium vehicles, it usually affects the other one as well. So be on the lookout for potential changes to the Model X offering in the coming days.

We’ve seen Tesla value Lifetime Supercharging at $5,000, so this falls in line with the price increase we’re seeing. It’s possible that Tesla will begin to bring back Lifetime Supercharging as a perk for buying into their more premium Model S and Model X cars, or this could be another temporary promotion to get buyers who are on the fence to go ahead and make their purchase while this promotion lasts.

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