Tesla Raises Prices of Model S and Model X in United States Market

According to the electric vehicle media Electrek, Tesla has increased the prices of the Model S and Model X in the US market by $10,000. However, these two models will now come standard with the Full Self-Driving (FSD) package, lifetime free Supercharging, Premium Connectivity, and a new 4-year "Premium Service" plan.

In recent years, sales of the Model S and Model X have continued to decline, and the latest minor upgrades to these two flagship models do not seem to have had a positive effect. Now, Tesla is attempting to break the current sales slump by adjusting prices and standard features.

Image source: Tesla

Tesla now includes a new "Luxury Package" as standard for 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 achieve unsupervised autonomous driving, but it is currently still classified as an L2 level 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, air conditioning filters, and windshield wiper blades.

Tesla will also reinstate the lifetime free Supercharging service for the Model S and Model X. Previously, Tesla had offered lifetime free Supercharging as an additional benefit for these two models, but canceled the service in 2018 citing its "unsustainability." However, it has occasionally been temporarily reinstated as a promotional incentive.

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 a new owner upon sale of the vehicle. If Tesla reasonably determines that the vehicle is being used for commercial purposes, it has the right to cancel the free Supercharging service for that vehicle, in which case the vehicle will default to a pay-per-use charging model.

Tesla has also launched the "Advanced Connectivity Service," allowing Model S and Model X owners to access features that require higher 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 of the Model S is now $94,990, with the Plaid version at $109,990; the Model X starts at $99,990, while the Plaid version is as high as $114,990.

Electric vehicle media Electrek believes that Tesla appears to be positioning 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 added features should not be underestimated— the key lies in whether the owner will fully utilize these upgraded configurations.

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