Tesla is raising the price of the Model X by $5,000 in the United States. The all-wheel drive Modex X, which was previously priced starting at $79,990, will now cost customers $84,990. The Plaid trim, which was previously priced at $94,990, will now cost $99,990.
The price hike follows a similar increase in December when the automaker raised the prices of its Model S cars in the U.S. by $5,000. The automaker also increased the prices of all of its models in the Canadian market. Tesla has not issued a public statement addressing or explaining the price increases.
Tesla has been working to regain lost market share after posting its first annual drop in deliveries and after its Q4 and 2024 results fell short of Wall Street’s expectations. In response to the intensifying competition in the EV market, part of the automaker’s strategy includes increasing discounts and incentives, boosting leasing penetration within the U.S., cutting production costs, and rolling out more affordable models.
During Tesla’s Q4 earnings call, CEO Elon Musk confirmed that cheaper models will hit the pavement by the first half of 2025. The specifications and prices of these more affordable models are still unclear. The company has also worked to reduce its average production cost per vehicle from $39,900 to $33,000.
In addition to creating cheaper models, the company wants to expand consumer access by doubling down on leasing efforts within the United States. The company introduced leasing buyouts for all Tesla models to strengthen its leasing program. Earlier this week, Tesla launched leasing for its iconic Cybertruck to stimulate consumer demand and trim bloated inventory levels.
