Tesla has increased the price of both of its Model X trims by $5,000. The company made the move late Thursday evening, marking the first time the flagship vehicle has seen a bump in price since the middle of last year.
The increase now puts the trims over the $80,000 limit for the Federal EV Tax Credit of $7,500.
The two trims of the Model X now cost $84,990 and $99,990 for the All-Wheel-Drive and Plaid builds, respectively.
🚨Tesla has increased the price of the Model X by $5,000 in the U.S.
– All-Wheel-Drive – $84,990
-Plaid – $99,990 pic.twitter.com/7rdOtMcYqb— TESLARATI (@Teslarati) February 7, 2025
The price increase could be blamed on several things: a short-term squeeze as tariff pressure builds, Tesla’s wish to gain some more margin on the Model X, a low-volume vehicle, and potentially a way to push consumers toward the Cybertruck, a vehicle that has a tremendous future for the company.
In Q4, Model S, Model X, and Cybertruck accounted for 23,640 of the 495,570 deliveries Tesla made. Cybertruck was likely a majority of this figure, but an exact breakdown is not available as Tesla does not break down their deliveries by model.
The Model X is a very low-volume vehicle at this point in time, and people who are buying it are truly fans of the car itself. It is unlikely that this $5,000 bump in price will change their minds about the vehicle, especially at its new starting price of $84,990.
In 2019, CEO Elon Musk referred to the cars as “niche products” and said Tesla was building them for “sentimental reasons more than anything else”:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
This sentiment alone sort of insinuates that Tesla could be trying to push consumers in the direction of vehicles that have more meaning in the future. This would be the Cybertruck, specifically because of the comparable price point.
Perhaps the biggest piece of this story is the fact that the Model X is now out of the qualifying price for the EV tax credit of $7,500. This fact seems to mean that consumers would potentially consider the Cybertruck for their vehicle over the Model X, simply because of relevance and now the tax credit qualification.
The last time Tesla initiated a price change on the Model X was back in July 2024, when it bumped the price up by just $2,000.
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