Tesla has surprisingly raised prices for the Model S in the USA. The basic version of the Model S All-Wheel Drive (AWD) now costs 79,990 dollars, while the Model S Plaid is available from 94,990 dollars - each 5,000 dollars more than before. This price increase comes at a time when Model S and Model X sales are stagnating. What is behind this decision?
Details of the price increase
Price adjustments at a glance
Updated on Friday Tesla its Design Studio configurator and increased the prices of the two Model S versions:
- Model S AWD79,990 $ (previously 74,990 $)
- Model S Plaid94,990 $ (previously 89,990 $)
The prices of other models such as the Tesla Model Y and Tesla Model 3 remained unchanged. There were no comparable adjustments in Canada either.
A significant jump
The current price increase is the second in just a few months. Back in July Tesla raised the price of the Model S in the USA by 2,000 dollars and in Canada by up to 6,000 dollars. Together with the current adjustment, the cost of the Model S has risen by a total of 7,000 dollars in the last five months.
Reasons for the price increase
Low sales figures for the Model S
Sales figures for the Model S and Model X have declined in recent quarters. In the third quarter of 2024, only 10,000 to 12,000 units were sold - a significant drop compared to the 20,000 vehicles sold in the same period in 2023.
Premium positioning
With the price increase Tesla position the Model S more strongly as a premium vehicle. At the same time Tesla possibly benefit from the reintroduced free lifetime Supercharger use for the Model S, which could justify the higher price.
Strategic goal: record quarter
Tesla is aiming to deliver over 515,000 vehicles in the fourth quarter of 2024. While the Model 3- and Model Y-lines are responsible for the volume, the price increase of the Model S could increase the overall margins and thus support the financial target.
Conclusion and outlook
The price increase of the Tesla Model S raises questions, especially in view of the current sales difficulties. Nevertheless, with its combination of technology, performance and exclusive features, the Model S remains a top model in the Tesla-portfolio. It remains to be seen whether this pricing strategy will bring the desired success or not. Tesla will have to create new sales incentives. Interested in more news about Tesla? Keep up to date with the latest Tesla news up to date!
Keywords: Tesla, Tesla Model Y, Tesla Model 3, Tesla Accessories, Tesla Store, Shop4Tesla, Tesla News, Model S, Price increase Tesla, Tesla Model S Plaid
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If you’re already more proud Tesla-Driver are or should be in a timely manner, visit our online shop Shop4Tesla and secure 10% Discount on all products with the discount code: NEWS4TESLA.In our extensive range you will find a variety of high-quality Tesla-Accessories for every model Discover exciting innovations and accessories that will Tesla-Make the experience even better - www.shop4tesla.com.
