For the first time in a while, Tesla has adjusted its vehicle prices, this time targeting the Model S. According to an update to the Design Studio on Friday, the price of both trims of the Model S has increased by $5,000 in the United States. The base Model S All-Wheel Drive (AWD) now starts at $79,990, up from $74,990, while the Model S Plaid carries a new price tag of $94,990, up from $89,990.
There have been no changes to pricing for any of the other models, and there have been no similar price changes in Canada.
This price adjustment is Tesla’s first major change to the Model S lineup in several months. The last time Tesla adjusted prices on its flagship sedan was back in July, when the company raised prices on both the Model S and Model X in Canada by as much as $6,000, and in the United States by $2,000.
Tesla’s decision to raise prices comes at an interesting time, and while Tesla has been known to adjust pricing frequently, the $5,000 increase stands out for two reasons. The first is that it is a significant jump, especially when combined with the earlier price increase in July, making the Model S $7,000 more expensive than it was five months ago.
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The second is the lackluster sales seen by the Model S recently. The company now lumps together sales of the Model S, Model X, and Cybertruck into the “other” category. Based on sales of the Cybertruck, which we’ve been able to get a pretty accurate figure of from recalls, indicate Model S/X sales were as low as 10,000-12,000 in the third quarter, compared to nearly 20,000 reported in the same quarter in 2023.
Add in the fact that Tesla is aiming for a record quarter of deliveries, pushing for more than 515,000 units in the final three months of the year, and the timing of a $5,000 price increase is a little surprising.
Why do you think Tesla raised the price of the Model S in the US? Let us know in the comments below.
