FYI: Tesla has upped the prices of its flagship Model S and Model X by $2,000 across all versions in the U.S.
Tesla Increases Prices for Model S and Model X Amid Slumping Sales
Tesla has announced a price increase of $2,000 for its premier vehicles, the Model S and Model X, across all versions in the U.S. This price adjustment brings the starting price of the Model S to $74,990, with an additional $1,640 in obligatory fees. Similarly, the Model X’s base price is now set at $79,990, plus the same fee.
New Pricing Structure
This change affects the entire lineup:
- Model S: The Long Range (LR) AWD with 19-inch wheels now starts at $74,990 (excluding fees), while the Plaid version with 21-inch wheels reaches up to $94,490.
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Model X: The LR AWD starts at $79,990, but only the entry-level version without any options qualifies for the $7,500 federal tax credit, falling just under the $80,000 price cap for SUVs.
Model Base Price Dest. Charge Tax Credit Effective Price 2024 Tesla Model S LR AWD 19-in $74,990 $1,640 N/A $76,630 2024 Tesla Model S LR AWD 21-in $79,490 $1,640 N/A $81,130 2024 Tesla Model S Plaid 19-in $89,990 $1,640 N/A $91,630 2024 Tesla Model S Plaid 21-in $94,490 $1,640 N/A $96,130 2024 Tesla Model X LR AWD 20-in $79,990 $1,640 $7,500 $74,130 2024 Tesla Model X LR AWD 22-in $85,490 $1,640 N/A $87,130 … … … … …
Historical Context and Sales Trends
The Model S and Model X have been significant players in the electric vehicle market since their respective launches in 2012 and 2015. Combined, they have achieved nearly 700,000 sales worldwide. However, the peak years of 2017 and 2018, when sales reached 100,000 units annually, are now past.
Sales Decline and Market Dynamics
Surprisingly, the price hike comes at a time when sales for these models are weaker than ever. Tesla does not report individual model sales, lumping Model S, Model X, Cybertruck, and even the Semi into an "other models" category. In Q2 2024, official data indicated 21,551 deliveries for this grouping, a 12% increase from the previous year. However, assuming around 8,000 Cybertruck sales, it’s clear that Model S and Model X volumes have dwindled significantly, perhaps losing as much as one-third of their volume.
Inventory and Delivery Insights
Currently, Tesla’s inventory for the Model S and Model X exceeds demand, as delivery times for new custom orders in the U.S. are estimated to be merely a few weeks—July through August. This suggests a potential oversupply, making the price increase an even more puzzling strategy.
Performance Specs
For those looking into performance and range, here’s a quick summary:
- Model S: The LR AWD (19-in) boasts an EPA range of 402 miles, a 0-60 mph time of 3.1 seconds, and a top speed of 149 mph.
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Model X: The LR AWD (20-in) offers a 335-mile range, 0-60 mph in 3.8 seconds, and a top speed of 149 mph.
Model Drive EPA Range 0-60 mph (sec) Top Speed (mph) 2024 Tesla Model S LR AWD 19-in AWD 402 mi 3.1 149 2024 Tesla Model S Plaid 21-in AWD 320 mi 1.99 200 2024 Tesla Model X LR AWD 20-in AWD 335 mi 3.8 149 2024 Tesla Model X Plaid 22-in AWD 300 mi 2.5 163
Conclusion
In conclusion, while Tesla’s decision to increase prices amid softened demand raises eyebrows, it might be an effort to prioritize profit margins over sales volume. Whether this strategy will pay off in the long term remains to be seen. For those interested in the latest Tesla news and in-depth analysis, visit us at Automotive.fyi, or follow us on X @automotivefyi.
William Kouch, Editor of Automotive.fyi
