Tesla Hikes Tesla Model X Price in a Move Apparently Aimed To Silently Kill Its Iconic SUV
Tesla has once again made headlines by increasing the Tesla Model X prices while simultaneously reviving an incentive that CEO Elon Musk once deemed unsustainable—free Supercharging for life. This unexpected move comes as Tesla continues to adjust pricing and incentives to maintain demand and stay competitive in the ever-changing EV market.
Model X Gets a $5,000 Price Hike
Tesla recently updated its Model X configurator in the U.S., raising prices by $5,000. The new pricing is as follows:
- Model X Long Range: Now starts at $84,990 (previously $79,990)
- Model X Plaid: Now starts at $99,990 (previously $94,990)
While price fluctuations are nothing new for Tesla, this particular increase has a notable downside—the Model X no longer qualifies for the $7,500 Federal EV tax credit. The government incentive applies only to electric SUVs priced under $80,000, meaning the Model X now exceeds that cap.
To help offset the price hike, Tesla is reintroducing an incentive package for Model X buyers. Customers can benefit from:
- A $1,000 discount when using a Tesla referral code
- One free option upgrade if purchasing the Full Self-Driving (FSD) package
- Free Supercharging for life—one of Tesla’s most popular incentives
The return of free Supercharging is particularly surprising because Elon Musk himself stated in 2020 that it was “not coming back to any Tesla vehicles” due to being financially unsustainable. However, Tesla previously brought it back as an end-of-the-year incentive in 2023, and now it’s officially making a return for Model S and Model X buyers.
Unlike earlier versions of the free Supercharging program, which were tied to specific vehicles and remained active even if the car was resold, Tesla has made some modifications this time around:
- It’s now linked to the Tesla account, not the vehicle—meaning it won’t transfer if the car is sold
- It doesn’t apply to commercial vehicles—this includes taxis, rideshare services, and delivery vehicles
- Only applies to personal purchases or leases—used vehicles and business orders are excluded
Tesla made similar exclusions in the past, but enforcing these rules has proven difficult. Whether Tesla will strictly regulate these terms this time remains to be seen.
Why Is Tesla Making These Changes?
Tesla’s decision to increase prices while simultaneously bringing back incentives suggests a few possible motives:
- Balancing Profit Margins: Rising costs and declining demand for premium EVs could be pushing Tesla to adjust pricing for profitability.
- Keeping Demand Steady: Tesla might be using free Supercharging as a way to boost Model X sales, especially after missing out on the tax credit eligibility.
- Staying Competitive: With increasing competition from Rivian, Lucid, and legacy automakers producing luxury EVs, Tesla might be looking for ways to keep its high-end models attractive.
While the return of free Supercharging is great news for potential buyers, the $5,000 price increase could make some reconsider purchasing a Model X—especially since it now exceeds the EV tax credit threshold. Some potential outcomes include:
- Short-term boost in sales: Free Supercharging might attract Tesla loyalists or buyers who were already on the fence.
- Long-term uncertainty: If Tesla reverses course again or removes incentives down the road, buyers may feel uncertain about committing.
- Impact on resale value: Since free Supercharging is tied to accounts, rather than vehicles, it won’t increase resale value the way it did in the past.
Tesla’s latest price adjustments and incentive offerings continue to reflect the company’s fluid pricing strategy. While a $5,000 price hike might be off-putting, the return of free Supercharging could entice buyers who prioritize long-term savings on charging costs. However, with Tesla’s history of frequent pricing changes, prospective buyers should weigh their options carefully before making a purchase. As always, Tesla keeps the EV market exciting and unpredictable—whether that’s good or bad depends on whether you’re already in the market for a Model X!
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