MEMPHIS REISEN

The Tesla Model S And Model X Just Got More Expensive

Tesla increased the prices of its two flagship models—the Model S and Model X—by $2,000 across all versions in the U.S.

The change pushed the Model S’s starting price to $74,990 (plus $1,640 in obligatory fees) and the Model X’s starting price to $79,990 (+$1,640). Among all Model S and Model X versions, only the entry-level Model X without any options qualifies for the $7,500 federal tax credit (it fits under the $80,000 price cap for SUVs).

700,000 Model S and Model X

The Tesla Model S has been on the market for over 12 years (since 2012), while the Model X has been for about 9 years (since 2015). The two models noted almost 700,000 sales globally, but the best times of some 100,000 units a year in 2017 and 2018 are behind.

The price hike is a bit surprising because sales of the two models are weaker than in the past, and a higher price tag will not help.

It’s believed that in the second quarter of 2024, the Model S/Model X duo noted a substantial decline in global sales. Tesla does not report individual model sales but instead lumps Model S, Model X, Cybertruck, and potentially even the Semi into the “other models” category. The official data indicate 21,551 deliveries of “other model” EVs, 12% more than a year earlier. However, assuming thousands of Tesla Cybertruck sales (potentially 8,000 in Q2), the Model S and Model X sales were down significantly. We are talking about losing a third of the volume, if not more.

Tesla Model S

Tesla Model X

Additionally, it’s clear that Tesla’s supply of Model S/Model X is much higher than demand, as the estimated delivery time for new custom-order cars in the U.S. is July-August. That’s just a few weeks between order and delivery.

We think the prices should be reduced to attract more customers and make the models more competitive. On the other hand, maybe Tesla decided to prioritize margins rather than volume.

* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).

** The $7,500 federal tax credit might be available through leasing to all models and versions.

* EPA range according to Tesla; acceleration, including rollout