One of the main value propositions of a Tesla Model X, Tesla Model S, or any other EV, in general, is that it will save their owners money over time. That is an important point to make because the initial buy-in of a mid to high-end EV commands quite a bit of cash. EV tax credits can help, but some EVs may not qualify. Tesla just made that buy-in a little harder on some of their vehicles.
Tesla Model X and Tesla Model S price increased by $5,000
According to a report from Reuters, the “Long Range” variants of the Tesla Model X and Tesla Model S have been increased by $5,000. Previously the Model X Long Range sold for approximately $100,000, and the Model S Long Range sold around $90,000. Today, the Model X Long Range and Model S Long Range start at $104,990 and $94,990, respectively.
The Tesla Model Y Long Range and the Model 3 Standard Range Plus also saw a price jump of $2,000, bringing their MSRPs to $56,990 and $43,990, respectively. The price jumps have been confirmed by the vehicles listings on the official Tesla website.
There has been no official statement from Tesla detailing why it has increased the price of the vehicles mentioned above.
This is not the first time Tesla has increased the prices of its vehicles
This recent price hike is not the first time that the MSRP of Teslas has gone up. In August 2021, the price of the base Tesla Model S by $5,000. It appears that at the time, the automaker did not see a reason to increase the price of the Model S Long Range or the Tesla Model X SUV. However, it appears something has changed that warranted the higher sticker price.
The Tesla Model 3 and Model Y both saw $500 incremental price increases earlier in 2021. Eventually, the Model 3 went from $37,000 to $40,000, and the Model Y Long Range started at under $50,000 but eventually rose to $51,940.
Around the time of those earlier price increases, some features were actually removed from the aforementioned vehicles. Specifically, the moving lumbar support feature was removed from the Model 3 and Model Y.
Why are the Model S and Model X prices going up by $5,000?
As mentioned previously, Tesla has not released an official statement to explain the $5,000 price increase of the Tesla Model S Long Range or the Tesla Model X Long Range. With no statement, we are left to speculate the reasons for the higher price tags.
That being said, in the past, when customers have complained about increasing prices and dwindling features, Elon Musk addressed them on Twitter and cited “supply chain price pressure” across the industry.
It is possible that the global semiconductor shortage could be a reason for the price increases. While it is true that Tesla navigated the chip shortage successfully and avoided any prolonged shutdowns, the automaker achieved that by switching to a different supplier. Tesla also updated the software on its vehicles to work with different components.
We are speculating, but there is a chance that the components Tesla switched to have a higher cost than those which eventually became scarce. If the components are more expensive, then this price increase could be Tesla’s way to compensate.
Perhaps if enough customers complain about the price hikes on Twitter, Elon Musk may just respond and provide more information.