Tesla has raised the prices of its Model S and Model X vehicles by $10,000 over the weekend, introducing a new feature package aimed at boosting sales of these long-range electric vehicles in the United States. The Luxe Package includes several premium features, such as the Full Self-Driving (Supervised) system, complimentary Supercharging, Premium Connectivity, and a four-year premium service plan.
This pricing strategy appears to be an effort to rejuvenate interest in the Model S and Model X, both of which have seen declining sales and limited hardware updates. The new package is mandatory for all new purchases of these models in the U.S., making it a significant change for potential buyers.
The Luxe Package offers features that may seem appealing, especially considering that the Full Self-Driving system is typically priced at $8,000 for the Model 3 and Model Y. However, FSD is still classified as a Level 2 autonomous driving system, meaning drivers must remain vigilant and maintain control at all times. This has raised questions about the actual value of the package, especially for customers who may not be interested in the FSD feature.
Another aspect of the package, complimentary Supercharging, once came standard with Tesla vehicles. For many users, the value of free charging may not be as significant if they primarily charge at home. The recent pricing adjustments were not widely announced, leaving many potential buyers unaware of the changes unless they actively monitored Tesla’s website.
As of now, the base price for the Model S All-Wheel Drive stands at $96,630, while the Model X All-Wheel Drive is priced at $101,630. Both models were previously available at $10,000 less just last week. Earlier this year, a more modest price increase of $5,000 was implemented, leading to a total price hike of $15,000 in just two months.
The Model S and Model X have seen significant changes in their market presence over the past two years. These vehicles were discontinued in right-hand drive markets, and Tesla ceased taking orders for them in China and Europe, leaving North America as their primary market. Given the latest price adjustments and the ongoing decline in sales, the future of these models appears increasingly uncertain.
In summary, Tesla’s strategy to escalate prices while introducing a mandatory feature package raises questions about the company’s long-term vision for the Model S and Model X. With declining sales and a lack of innovation, it remains to be seen how this pricing change will impact consumer interest moving forward.
