EV giant Tesla Inc. has increased the price of its premium Model X SUV by $5,000. This change now makes the all-wheel drive version ineligible for a federal EV tax credit of $7,500.
What Happened
The all-wheel drive Model X is now priced at $84,990, while the more premium Plaid variant is priced at $99,990. Tesla has not provided a reason for the price hike on its website and did not immediately respond to requests for comment.
Previous Pricing and Tax Credit Eligibility
Previously, the base version of the Model X qualified for a federal tax credit as it was priced at $79,990, below the price limit of $80,000 required to be eligible.
Impact on Tesla’s Product Lineup
The Model X is now Tesla’s most expensive offering in the U.S. The company’s other premium vehicle offerings, the Model S and the Cybertruck, start at $79,990 for the base variant. The base version of the Cybertruck is also eligible for the EV tax credit, increasing the effective price for eligible customers to $72,490.
Recent Updates to Tesla’s Lineup
Tesla recently launched a refreshed version of its more affordable SUV, the Model Y, with a 25% price hike and full self-driving included. The long-range all-wheel drive variant of the refreshed vehicle is priced at $59,990. Deliveries of the refreshed vehicle are slated to start in March.
Conclusion
The price hike of the Model X by $5,000 has significant implications for Tesla’s product lineup and customer eligibility for federal tax credits. As the electric vehicle market continues to evolve, companies like Tesla must balance pricing strategies with government incentives and customer demand.