Tesla Model X
Jeremy Johnson's picture

Tesla Increases Model X/S Prices by $5,000

Tesla has increased the price of its long range Model S and Model X vehicles in the U.S. by $5,000. We think this price increase is due to increased demand and lack of supplies overall. Let's see what others have to say about this!

Price Increases for Model S and Model X

Tesla has increased prices for its Model S Long Range and Model X Long Range vehicles by $5,000 in the United States. This is a significant increase. The increases are as follows:

Model S Long Range from $94,990 to $99,990.
Model X Long Range from $84,990 to $89,990.

Why Did Price Increase?

There's several theories on why price increased, but we think it is because of two things:

There is strong demand for each vehicle.
There is a shortage of supply chain parts for each vehicle.

When demand is greater than supply, price will naturally go up.

Will the prices continue to increase? I think they will, for all Tesla models, until the entire supply chain is ahead of the demand for all the vehicles. I don't think this is going to happen anytime soon though as demand for electric vehicles continues to go up and up.

It is possible that once Giga Berlin and Giga Austin, Texas, are up and running, and producing vehicles in volume that we start to see the prices start to drop. But, again, it will come down to supply chain shortages being resolved.

What Will the Price Be in the Future?

I think we can see a 5% increase in price of the Model S and Model X every year until the demand starts to cool down. When that will be is anybody's guess - could be in a year, could be 5 years. It will be when the entire supply chain is keeping up easily with the demand.

What do you think about the price increase for the Model S and Model X? Is this price increase too much? Will we continue to see price increases for Tesla vehicles?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter, Facebook, LinkedIn and Instagram to stay in touch and follow his Tesla news coverage on Torque News.

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The price hikes are unfortunate. But without having great competition (even at these higher prices) you can understand that Tesla would want to profit from their market advantage. It is interesting that the difference between the regular Model X LR and the Plaid model is $20K, but the difference between the Model S LR and the Plaid model is $40K!
I just wish they would honor stated delivery dates. When I ordered, I was told I would receive my Model S Long Range in October. It's now slipped to late November - mid December.