EV giant Tesla Inc has increased the starting price of its Model S premium sedan in the US by $5,000, bringing it to $79,990, on par with the starting price of the Model X SUV.
What Prompted the Price Increase?
The company has raised the starting price of both the All-Wheel drive variant and the Plaid version of the Model S by $5,000, resulting in price parity between these variants and those of the Model X premium SUV. This price adjustment brings the Model S All-Wheel Drive and Plaid variants’ prices to $79,990 and $94,990, respectively, which is the same as the respective variants of the Model X.
Model S Price Comparison
| Model | New Price | Old Price |
|---|---|---|
| Model S All-Wheel Drive | $79,990 | $74,990 |
| Model S Plaid | $94,990 | $89,990 |
(All amounts in $)
Previous Price Adjustment
This price increase marks the second time this year that Tesla has raised the price of the Model S variants. The last price hike occurred in July.
Why is This Price Increase Significant?
The Model S and Model X were previously Tesla’s only premium offerings until the start of Cybertruck deliveries in late November last year. However, data from Kelley Blue Book shows that Tesla sold 16,692 Cybertrucks in the third quarter in the US, making it the third-best-selling EV behind the Model Y and Model 3.
Impact on Model S and X Sales
Although the Cybertruck has been a success, its surge in sales has negatively impacted the Model S and X. According to KBB estimates, Model S sales in the US fell by about 47% year-on-year in the last quarter, while Model X sales slipped by 29%.