Tesla Revises Model S and Model X Pricing Strategy: Base Models Drop While Performance Versions Rise
In a strategic move that makes Tesla's luxury electric vehicles more accessible to some buyers while increasing exclusivity at the high end, MotorVero has learned that the automaker has implemented significant price adjustments across its Model S sedan and Model X SUV lineups. These changes reflect Tesla's evolving product positioning and consumer demand patterns in the competitive luxury EV market.
Key Takeaways: Tesla has reduced entry-level Model S prices by $5,000 and Model X prices by $3,000, while increasing costs for the high-performance 100D and P100D variants. The changes come alongside the discontinuation of the base Model S 60/60D models and the addition of new standard features.
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Detailed Price Changes Across Tesla's Luxury EV Lineup
The most notable adjustments affect the entry-level models equipped with 75 kilowatt-hour battery packs:
| Model | Previous Price | New Price | Change |
|---|---|---|---|
| Model S 75 | $75,700 | $70,700 | -$5,000 |
| Model S 75D | $80,700 | $75,700 | -$5,000 |
| Model X 75D | $86,700 | $83,700 | -$3,000 |
Mid-Range and High-End Adjustments
The pricing strategy shows a different pattern for higher-specification models:
- 90D Models: Reduced by $2,000 (Model S 90D now $88,700, Model X 90D $94,700)
- 100D Models: Increased by $5,000 (Model S) and $1,000 (Model X)
- P100D Performance Models: Significant increases of $5,500 (Model S) and $9,500 (Model X)
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Strategic Implications of Tesla's Pricing Restructure
This pricing adjustment represents a calculated move by Tesla to accomplish several strategic objectives:
"Periodically, we adjust pricing and available options to best reflect the value of our products and our customers' preferences," Tesla stated in an official communication with MotorVero. "We expect our total average selling price to remain almost exactly the same."
Industry analysts suggest these changes serve multiple purposes:
- Market Expansion: Lower entry prices make Tesla vehicles more competitive against luxury ICE vehicles
- Profit Protection: Higher margins on performance models offset reduced base prices
- Product Simplification: Discontinuing the 60/60D models streamlines production
- Feature Standardization: Glass roofs and power liftgates now included across all Model S variants
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Enhanced Standard Features and Charging Options
Alongside the price adjustments, Tesla has made several notable changes to standard equipment and options:
New Standard Equipment
All Model S variants now include as standard:
- Glass panoramic roof (previously a $1,500 option)
- Power liftgate with automatic opening/closing
- Choice between coil or adaptive air suspension
Charging System Updates
The charging architecture now varies by battery size:
| Battery Size | Charger Capacity | Available In |
|---|---|---|
| 75 kWh | 48-amp | Model S 75/75D, Model X 75D |
| 90 kWh | 48-amp | Model S 90D, Model X 90D |
| 100 kWh | 72-amp | Model S 100D/P100D, Model X 100D/P100D |
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Discontinued Models and Upgrade Options
Tesla has officially discontinued the Model S 60 and 60D variants, which utilized software-limited 75 kWh battery packs. Owners of these models can purchase an over-the-air upgrade to unlock their battery's full potential:
- Range Increase: 15-41 additional miles depending on original configuration
- Performance Boost: Improved acceleration and power delivery
- Convenience: Upgrade processed remotely without dealer visit
The same upgrade option applies to the previously discontinued 70/70D models, providing existing owners with a path to enhanced performance.
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Market Context and Competitive Positioning
These pricing changes occur as the luxury EV market becomes increasingly competitive:
- German Competition: Audi e-tron, Porsche Taycan, and Mercedes EQS entering market
- Domestic Rivals: Lucid Air and Rivian targeting similar premium segments
- Tax Credit Phaseouts: Reduced federal incentives putting pressure on pricing
By adjusting its pricing architecture, Tesla appears to be positioning itself to compete more effectively across multiple price points while maintaining its technological leadership position.
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What Buyers Should Consider
For consumers in the market for a luxury electric vehicle, these changes present both opportunities and considerations:
Pro Tip: The price increases for 100D and P100D models won't take effect immediately, creating a limited window for buyers to lock in current pricing on high-end configurations.
Key factors to weigh include:
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- Budget vs. Performance: Base models now more affordable, but performance variants command premium
- Standard Features: New inclusions add value at lower price points
- Charging Needs: Higher-capacity chargers only available with 100 kWh batteries
- Resale Value: Historically, Tesla performance models hold value better
As Tesla continues to refine its product lineup and pricing strategy, these changes represent another step in the company's evolution from niche manufacturer to mainstream luxury automaker. The adjustments suggest Tesla is becoming increasingly sophisticated in its market segmentation and value proposition across different buyer profiles.
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