Tesla has officially increased prices for its Model S and Model X by $5,000, following a subtle design and performance refresh. The new prices went live in the U.S. this week, affecting all variants of both models:
- Model S Long Range: Now $84,990 (was $79,990)
- Model S Plaid: $99,990
- Model X Long Range: $89,990
- Model X Plaid: $104,990
The price hike signals Tesla’s push to boost profit margins amid declining premium model sales and increased competition from Lucid, Rivian, and legacy automakers.
🚗 What’s New in the 2025 Refresh?
Tesla’s 2025 refresh of Model S and X includes moderate upgrades focused on comfort, styling, and efficiency:
🔧 Performance & Range
- Model S Long Range now offers 410 miles of range on 19″ wheels (a 5-mile improvement).
- However, Model S Plaid’s top speed drops from 200 mph to 149 mph, while overall vehicle weight has slightly increased.
🎨 Design & Features
- New front bumper camera
- Updated wheel designs for better aerodynamics
- Enhanced noise insulation
- Adaptive headlights and suspension refinements
- Dynamic ambient lighting
🛑 Steering Options
- The yoke steering wheel is no longer standard on any variant. It’s now an optional $1,000 upgrade for Plaid models.
📉 Demand Trends & Market Context
Tesla’s decision to raise prices comes amid softening demand for its high-end lineup. In Q1 2025, Tesla delivered only 12,881 units globally across the Model S, X, Cybertruck, and Semi categories.
The shift toward price increases over feature upgrades suggests Tesla is prioritizing margin over volume for its flagship vehicles, potentially prepping for a larger financial repositioning or to fund R&D for next-gen platforms.
🥇 Competitive Landscape
While Tesla still leads in EV software and infrastructure, rivals like Lucid Air and Rivian R1S offer similar or better range, luxury interiors, and faster updates.
Critics argue the 2025 refresh lacks breakthrough innovation seen in newer platforms like the Cybertruck (which features steer-by-wire and 48V architecture).
🔍 Summary Takeaway
With the move, Tesla raises prices by $5,000 without major breakthroughs—likely to protect profitability amid slowing S/X sales. For Tesla loyalists, the updates may be sufficient. But for new buyers comparing options, competitors may now look more attractive in the luxury EV space.
