Tesla made headlines recently when it announced a $5,000 price increase for both trims of its Model X. This marked the first price hike for the flagship vehicle since mid-2024, bringing the All-Wheel-Drive trim to $84,990 and the Plaid trim to $99,990. This increase pushed the Model X over the $80,000 threshold for the Federal EV Tax Credit of $7,500.
There are several factors that may have contributed to this price adjustment. It could be a result of short-term tariff pressures, Tesla’s desire to improve margins on the low-volume Model X, or a strategic move to steer consumers towards the upcoming Cybertruck, which has a promising future for the company.
In Q4, Tesla delivered a total of 23,640 Model S, Model X, and Cybertruck vehicles out of the 495,570 total deliveries. While the breakdown by model is not officially disclosed, it is evident that the Model X is a niche product with a dedicated fan base. CEO Elon Musk has previously referred to the Model X as a sentimental project, hinting at its lower priority in Tesla’s future lineup.
The price increase has also taken the Model X out of the eligibility range for the EV tax credit, making the Cybertruck a more appealing option for consumers looking for a similar price point and tax credit benefits. This shift in pricing strategy aligns with Musk’s vision of focusing on vehicles with greater significance in the company’s future.
This latest price adjustment comes after a $2,000 increase in July 2024, indicating Tesla’s ongoing efforts to optimize pricing and product positioning in a competitive market. As the automotive industry continues to evolve, Tesla’s strategic pricing decisions will play a crucial role in shaping its product portfolio and market positioning.
For Tesla enthusiasts looking to accessorize their vehicles, the Teslarati Marketplace offers a range of accessories to enhance the Tesla experience. For further inquiries or news tips, reach out to the Teslarati team via email or social media channels. Stay tuned for more updates on Tesla’s pricing and product developments in the dynamic electric vehicle market.