Tesla has increased Model S and Model X prices, following several massive price cuts to its flagship models, but it is also giving three years of free Supercharging to new buyers.
Since the beginning of the year, Tesla has been cutting prices across its entire vehicle lineup.
Model S and Model X saw the most significant price drops and following another wave of price cuts earlier this month.
Tesla’s flagship sedan was now starting at $85,000 and its flagship electric SUV was starting at $95,000.
Now a new overnight update to its online configurator, Tesla increased the price of the Model S by $2,500:
The increase applies to both the base Long Range version and the Plaid top performance version.
But Tesla has also added three years of free Supercharging for all new purchases.
The same offer has been applied to the Model X:
As we noted during Tesla’s production and delivery results for Q1 2023, there was a large discrepancy between Tesla’s Model S/X production and its deliveries in Q1.
The automaker claimed it was due to a large number of those vehicles being in transit to Europe and Asia.
This seems to be another demand trigger for Tesla.
At the Model S and Model X price range, three years of free Supercharging is probably a bigger demand creator than a $2,500 price cut.
It does seem that Tesla has issues selling Model S and Model X based on inventory popping up and the large number of inventory vehicles at the end of the quarter. I know that Tesla claimed that end-of-quarter transit was the issue, and I’m sure that this is partly true, but I think a lack of orders also contributed.
The fact that Model S/X are the only Tesla vehicles that don’t qualify for the new federal tax credit probably also contributed to softening in demand for Tesla’s flagship models.
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