Tesla Raises Prices by $5,000 on Upgraded Model S and X in US

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In a notable move, Tesla has raised the prices of its Model S and Model X by $5000 across all trims in the US. The announcement made on June 13, 2025, follows the launch of updated versions of both vehicles with several design and tech improvements. While Tesla has remained quiet about a full redesign, these enhancements aim to keep its luxury EV lineup relevant and competitive in a rapidly evolving market.

Tesla’s decision comes at a time when it is recalibrating its pricing strategy for its premium offerings. As global EV competition intensifies and deliveries of Model S/X continue to decline, the company is leaning on quality upgrades and price adjustments to maintain its brand position. 

Updated Prices and Models

With this increase, here’s where the updated pricing stands:

  • Model S Long Range AWD: 84,009 
  • Model S Plaid: $99,990 
  • Model S Long Range AWD: $89,990
  • Model X Plaid: $104,990

These changes apply to all newly configured vehicles in the United States, as reflected on Tesla’s official website. 

What’s New in the Upgraded Model S and X?

Tesla hasn’t released an all-new Model, but it has quietly introduced several notable refinements to enhance the premium experience.

Key updates include:

  • Frost Blue Paint: A fresh colour option exclusive to Model S/X.
  • New wheel designs: Both Models feature sleeker, more aerodynamic wheels.
  • Front bumper camera: Improved visibility and parking support.
  • Dynamic ambient lighting: a more luxurious cabin feel.
  • Enhanced cabin comfort: active noise cancellation for a quieter ride.
  • Adaptive driving beams: Better night visibility with smart high beams.
  • More third-row space (Model X): Improved comfort and cargo room.

These enhancements help Tesla deliver a more refined driving and ownership experience, while also justifying the price increase. According to Electrek, these are the most significant Model S/X updates since 2021.

Tesla, Inc. (TSLA) Stock Chart

Why the price Hike?

Tesla has long shifted between price cuts and hikes depending on market conditions, production costs, and demand levels. In 2023 and early 2024, Tesla reduced prices across several Models to stimulate demand. However, Model S and X remain in their premium segment, where exclusivity and margins matter more than volume.

Reasons for the $5000 increase:

  • Repositioning as a luxury vehicle: Tesla is reinforcing its premium status against competitors like Lucid and Mercedes-Benz.
  • Offsetting lower volume: Combined global deliveries of Model S/X fell below 50,000 units in 2024.
  • Enhances features: The updates add real value, making a higher price point more acceptable.
  • Margin improvement strategy: Higher prices help Tesla balance falling sales while protecting profitability.

Elon Musk has previously stated that S/X Models are not intended to be volume sellers but are instead halo products that represent the best of Tesla’s technology and luxury.

What it Means for Buyers

If you’re considering buying a Tesla Model S or X, here’s what to keep in mind.

  • Higher upfront cost: But with added features and better refinement.
  • Resale value: Upgraded models may maintain stronger resale value.
  • Exclusive features: Many new additions, such as cabin noise control and dynamic lighting, enhance luxury appeal.
  • Availability: These updates are currently US-only, with global rollout details yet to be announced.

Tesla is clearly aiming at customers who prioritize performance, comfort, and the Tesla Brand, rather than price-sensitive buyers.

Final Take: The Road Ahead

With this pricing update, Tesla continues to position itself not just as an EV pioneer but as a serious player in the luxury car market. While Model S and X are no longer Tesla‘s main revenue drivers, they still hold importance for brand prestige and profitability. By pairing meaningful improvements with a price increase, Tesla ensures these Models stay competitive without losing their premium edge.

For buyers, the price hike might feel steep, but the added comfort, tech, and design tweaks deliver a more complete experience, especially for those already shopping in the $80K-$100K range.

FAQs

Q1. Why did Tesla raise prices for Model S and X?

Tesla introduced several feature upgrades and refinements, positioning these cars more firmly in the luxury EV category.

Q2. What are the new prices for these Models?

Model S starts at $84,990 and Model X starts at $89,990, with plaid versions for both above 99,000.

Q3. Will this affect other Tesla Models like Model 3 or Model Y?

No, the price increase only applies to the Model S and X in the US.

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.