Tesla’s Clever Move: Model X And S Pricing & The Full $7,500 Federal Credit!
Having revamped its pricing for the Model S and Model X in the U.S., Tesla has slashed the prices by 15-19%. This comes after the software-limited Standard Range versions, introduced recently, were pulled out of the lineup in less than two weeks.
These versions, priced at $82,990 for Tesla Model S and $88,490 for Tesla Model X, were introduced as a market experiment. However, they didn’t gain traction, prompting Tesla to offer better deals on their full range versions.
Below is the new pricing structure for the cars, exclusive of DST and Order Fee:
| Car Model | Previous Price | Price Decrease | New Price |
|---|---|---|---|
| Model S LR AWD | $88,490 | ↓ $13,500 (15.3%) | $74,990 |
| Model S Plaid | $108,490 | ↓ $18,500 (17.1%) | $89,990 |
| Model X LR AWD | $98,490 | ↓ $18,500 (18.8%) | $79,990 |
| Model X Plaid | $108,490 | ↓ $18,500 (17.1%) | $89,990 |
Notably, the Tesla Model X Long Range AWD, now priced at $79,990, qualifies for the full $7,500 federal tax credit. Post the destination charge, the effective price stands at $74,130. The Inflation Reduction Act of 2022 (IRA) stipulates that prices for crossover/SUVs, vans, and trucks must not surpass $80,000, whereas for other cars, the cap is $55,000, disqualifying the Model S.
Additionally, Tesla has waived off the cost for paint options on the Model S and Model X. This is a notable move, especially considering the Ultra Red color variant was previously priced at $3,000. Moreover, the Full Self-Driving (FSD) feature now comes at a reduced price by $3,000.
These changes are largely attributed to the need to stay under the $80,000 threshold for the federal tax credit, particularly for the Model X. There’s evidence that the revisions are stirring interest. The estimated delivery time for the Model X has now been extended to October-November, whereas it was earlier projected for September-October.
Incidentally, Tesla has lately revamped the appearance of the Model 3, both externally and internally.
Source: Tesla
2024 Tesla Model S: What You Need to Know
| Year | Body | Trim | Range | Price |
|---|---|---|---|---|
| 2024 | Sedan | Model S | 405 | $74,990 |
| 2024 | Sedan | Plaid | 396 | $89,990 |
