Tesla Raises Model S and Model X Prices in the United States

According to the electric vehicle media outlet Electrek, Tesla has recently increased the prices of the Model S and Model X in the U.S. market by $10,000. However, these two models will now come standard with the Full Self-Driving package, lifetime free Supercharging, "Premium Connectivity," and a new four-year "Enhanced Service."

In recent years, the sales of Model S and Model X have continued to decline, and the latest minor upgrades to these flagship models do not seem to have helped boost their sales. Now, Tesla is trying to break the current sluggish sales situation by adjusting prices and standard features.

Image source: Tesla

Tesla currently includes a new "Luxury Package" as standard on all Model S and Model X vehicles, which includes the Full Self-Driving (FSD) feature priced at $8,000. Tesla claims that FSD will eventually enable fully autonomous driving without supervision, but it currently remains a Level 2 driver assistance system.

In addition, Tesla offers a new 4-year "premium service" for these two models, covering tire and windshield protection plans as well as maintenance services, including regular inspections (such as wheel alignment, tire rotation, and front camera cleaning), as well as the replacement of HEPA filters, cabin air filters, and wiper blades.

Tesla will also restart the lifetime free Supercharging service for the Model S and Model X vehicles. Previously, Tesla offered lifetime free Supercharging as an additional benefit for these two models, but discontinued the service in 2018 citing it as "unsustainable." However, it has occasionally been temporarily reinstated as a promotional tool.

Tesla's new terms state that the free Supercharging service may not be used for commercial purposes (such as using the vehicle as a ride-hailing car), and the service is non-transferable to new owners upon the sale of the vehicle. If Tesla reasonably determines that the vehicle is being used for commercial purposes, it reserves the right to cancel the free Supercharging service for that vehicle, after which the vehicle will default to a pay-per-use charging model.

Tesla has also launched a "Premium Connectivity" service, allowing Model S and Model X owners to use features that require greater bandwidth, such as real-time traffic visualization, satellite maps, and video streaming, typically charged at $10 per month or $100 per year.

All the above new configurations come with a price increase: The starting price for Model S is now $94,990, and the Plaid version is $109,990; the starting price for Model X is $99,990, while the Plaid version is as high as $114,990.

The electric vehicle media outlet Electrek believes that Tesla seems to be trying to position the Model S and Model X as higher-end luxury models.

The $10,000 price increase is indeed significant, but the potential value brought by the new features is equally considerable—the key lies in whether the car owner will make full use of these upgraded configurations.

FSD is usually priced at $8,000, but it only makes sense for car owners who need this feature; if not, then the Model S and Model X may not be very cost-effective for consumers. The value of free supercharging is difficult to quantify because it depends on how frequently the owner uses fast charging.