Tesla vehicle prices always fluctuate for a variety of reasons, including demand, currency adjustments, production, and other reasons. However, out of the blue, Tesla has now raised the price for the Model X and Model S in North America and Europe.
Price Changes
The Model X recently hit one of its lowest prices, with the Long Range variant priced at $79,990—just below the federal EV tax credit threshold. This meant eligible buyers could claim an additional $7,500 rebate, making it an even more attractive deal.
Now, it’s a double blow: Tesla has increased the Long Range Model X price to $84,990, pushing it above the tax credit limit. As a result, some buyers could see an effective price hike of $12,500, making the vehicle significantly more expensive.
The Model X Plaid sees even more of an increase, with it going from $89,990 to $99,990. The increases aren’t just in the U.S., but also affect Canada and most of Europe as well. Just two weeks ago, Canada raised their vehicle prices of the Model S and X by $4,000 CAD to account for currency fluctuations.
Here are the price changes before taking into account any tax rebates or taxes.
American Price Changes
Prev Price | New Price | |
|---|---|---|
Model S Long Range | $74,990 | $79,990 |
Model S Plaid | $85,990 | $94,990 |
Model X Long Range | $79,990 | $84,990 |
Model X Plaid | $89,990 | $94,990 |
Canadian Price Changes
Prev Price | New Price | |
|---|---|---|
Model S Long Range | $114,990 | $114,990 (no change) |
Model S Plaid | $135,990 | $135,990 (no change) |
Model X Long Range | $114,990 | $121,990 |
Model X Plaid | $135,990 | $142,990 |
European Price Changes
Prev Price | New Price | |
|---|---|---|
Model S Long Range | €94,990 | €110,990 |
Model S Plaid | €99,990 | €120,990 |
Model X Long Range | €94,990 | €115,990 |
Model X Plaid | €99,990 | €125,990 |
Free Supercharging & Premium Connectivity
Although these price changes are disappointing for anyone in the market, Tesla is adding a few incentives. Every Model S and Model X now come with Lifetime Free Supercharging, something Tesla was previously going away from to prevent Supercharger congestion.
Tesla is also including free Premium Connectivity, which normally costs $10/month or $99/year. So there are certainly some savings to be had by buying the now more expensive model.
It’s worth noting that even with free Supercharging, owners are not exempt from congestion or idle fees. Those fees are there to prevent drivers from blocking Superchargers for extended periods of time, so they apply to everyone.
Why the Price Adjustment
It’s not clear where this change is coming from. The Model S and Model X have dwindling sales, partly due to the Model 3 and Model Y offering more of the features that used to be exclusive to the Model S/X, like ventilated seats. However, the Cybertruck is likely also causing sales to dip for the Model X, as they’re both larger vehicles.
All Model S and Model X vehicles are produced in Fremont, California, so the price increase outside of the U.S. isn’t as surprising since Tesla likely wants to fill demand in the U.S. first, where it’s cheaper for them to get cars to their final destination.
With Tesla selling just 84,133 Model S, Model X, and Cybertruck vehicles in all of 2024, it’s certainly possible that Tesla is planning to phase these vehicles out to reduce logistics and make room for new models at their existing factories. For comparison, Tesla sold 1.7 million Model 3 and Model Y vehicles in 2024.
As Tesla sales slump in January, we’ll have to see how these new prices affect sales.
