Elon Musk Increases Prices for Tesla’s Model S and X
As one of the most popular electric car manufacturers in the world, Tesla has always been known for its sleek and innovative design. However, owning a Tesla now comes at a higher price as CEO Elon Musk announced a price increase for Model S and X vehicles.
Why the Hike?
Musk revealed on Twitter that the increase is due to the removal of discounts on Tesla vehicles. The discounts were introduced to offset the lower federal tax credits for electric vehicles as they reached sales thresholds. However, the electric vehicle credits came back in full force this year, allowing Tesla to remove the discounts from its prices.
The New Costs
So, how much are the increased prices? The Model S Long Range now starts at $79,990, up $5,000 from its previous price tag. Meanwhile, the Model X Long Range starts at $84,990, a price increase of $5,000 as well. Tesla’s website also shows that the Model S Plaid, its high-performance model, now has a starting price of $129,990.
The Impact on the U.S.
While the price increase might seem insignificant for some buyers, it can limit the number of people who can afford Tesla’s luxury vehicles. The higher prices could impact Tesla’s sales in the United States, where the company has a significant market share. Currently, Tesla is the market leader in electric cars, accounting for more than 70% of all new electric vehicles sold in the United States.
Overall, while the price hike may make it difficult for some to purchase a Tesla vehicle, the company remains committed to developing innovative and sustainable transportation solutions.