Tesla Just Increased the Price of the Model S by $5,000

It’s no secret that car prices are rising. Typically, this tends to drive consumers to buy used vehicles if prices get a little too much for their wallets to bear, but right now, even used vehicles cost far more than in years past. Now, Tesla is creeping the price up for the Model S, and some are wondering if the updated prices are worth it.

It’s hard to top Tesla

A Tesla Model S driving to a parking lot outside of a Tesla showroom
A Tesla Model S outside of a showroom | Justin Sullivan/Getty Images

When it comes to EVs, Tesla is king. While the EV field is becoming increasingly cluttered with automakers desperate to get on the green wagon, Tesla continues to manage to stand out, at least for the moment.

Tesla models have a clean look to them that makes them easily identifiable at a glance. Then there’s the fact that few automakers even come close to the range of Tesla vehicles. For many EVs from Tesla competitors, you’ll feel lucky to get 200 miles out of it before you have to stop and charge up. Meanwhile, the Tesla Model 3, as the lowest range Tesla model, still gets 300 miles. 

However, the one area that Tesla falls behind the competition is the price range. Teslas cost far more than the competition in most cases, although some luxury EV options like the Porsche Taycan might actually cost more. We say it might because Tesla is cranking up the price range on its vehicles, and it might be cheaper to go with a Porsche soon if this trend continues.

Prices are creeping up

Thanks to the current chip shortage plaguing the automotive industry, the value of cars is skyrocketing. This is because it’s becoming increasingly difficult to stock cars on the lot, and some automakers are increasing their prices accordingly.

This is true for Tesla as well as many other companies. According to News Break, “Tesla has increased the base price of the Model S Long Range to $91,190. It has gotten steadily more expensive recently, as the Long Range was previously available for just over $70,000.”

Tesla has added about $5,000 to the price of the Model S. This is after already increasing it by $5,000, so the price has actually risen $10,000 in just a month, according to Electrek. Some consumers wouldn’t blink at paying that much more, but it’s simply too much to afford for others. Then there’s the group in the middle that could squeeze the extra money out, but it might not be the wisest decision. So is the price increase truly worth it?

Is the price increase on the Model S worth it?

That’s the $10,000 question. If you’re going for the new Plaid version, it just might be. Of course, the Plaid starts at $129,990, a price most people would swoon upon seeing. So, what about the lower trims of the Model S?

It really depends. Yes, the Model S is a striking vehicle that is worthy of consumer praise. However, it’s also starting to become more frustrating to drive. As Tesla moves toward AI-driven vehicles, Elon Musk has decided to take as many driving features away from the actual driver as possible. While that might sound good on paper, cars that drive themselves aren’t fully functioning yet. There has been some amazing progress, but not enough to start taking away manual inputs needed for control and safety purposes.

Elektrek thinks that Tesla might be taking advantage of the supply chain situation. After all, the price has risen almost 30%, which is a bit much, even if it’s become more difficult to ship things out. On the other hand, it could be a combination of a lack of supplies and Tesla jumping at the opportunity to make more money. Either way, $10,000 more is a bit much to pay for a vehicle that you can’t even find the controls on.

RELATED: Consumer Reports Says to Avoid the 2020 Tesla Model S