Tesla Raise Prices On Model S and Model X In U.S. and Canada Market

Tesla has enforced price increases for its Model S and Model X electric vehicles (EVs) in both the United States (U.S.) and Canada, despite beating delivery estimates in the EV industry.

In the U.S. market, prices for all Model S and Model X trims have increased by $2,000. The Model S Long Range now starts at $74,990, while the Plaid trim starts at $89,990. For Tesla Model X, the Long Range trim now starts at $79,990, with the Plaid trim priced at $94,990.

The price hikes in Canada are more varied. For the Model S All-Wheel Drive (AWD), it saw a considerable increase of CAD 6,000 ($4,300), now starting at CAD 103,990 ($75,730). The Model S Plaid received a smaller price bump of CAD 2,000 ($1,450), bringing its starting price to CAD 124,990 ($91,025). Both Model X trims in Canada increased by CAD 3,000 ($2,180), with the AWD version now starting at CAD 110,990 ($80,830) and the Plaid at CAD 131,990 ($96,120).

Notably, this price adjustment arrives when Tesla’s Q2 delivery figures hit 443,956 units, surpassing industry estimates of 438,019 units. As a result, the hike in the prices of the Model S and Model X appears intriguing, based on Tesla’s EV strategy in North America. 

Read More: Tesla Beats Q2 Delivery Estimates With Shares Surging During Market Challenges

Interestingly, Tesla has maintained the Model X Long Range’s eligibility for the U.S. federal EV tax credit. By keeping its price just under the $80,000 MSRP limit for SUVs, Tesla ensures that buyers can still benefit from the incentive. 

As Tesla navigates the EV market with price increases for its higher-end EV models, the results of these strategic actions will be reflected in the coming months as the company watches closely on buyer demand for its EVs. Tesla’s Q2 financial report will be released on July 23.

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