Tesla recently significantly changed the Model S and Model X offer in the United States, cutting prices of the cars by 15-19 percent.
Let's start with the recently introduced software-limited Model S/Model X Standard Range, which disappeared from the lineup within two weeks. As we understand, the SR versions were kind of an experiment to test the market to see whether customers would be interested in ordering such cars starting at an MSRP of $82,990 (Model S) and $88,490 (Model X).
It seems that the experiment failed expectations and did not improve sales. Therefore, Tesla had to lower prices of the versions with full range and the new prices are even lower than the previous ones with limited range - respectively $74,990 (Model S) and $79,990 (Model X). As we can see below, the new offer is much more attractive.
Tesla Model S/Model X price change (*without DST and Order Fee):
- Model S LR AWD: $74,990 (down $13,500 or 15.3% from $88,490)
- Model S Plaid: $89,990 (down $18,500 or 17.1% from $108,490)
- Model X LR AWD: $79,990 (down $18,500 or 18.8% from $98,490)
- Model X Plaid: $89,990 (down $18,500 or 17.1% from $108,490)
In the case of the Tesla Model X Long Range AWD, the price of $79,990 enables it to qualify for the full $7,500 federal tax credit, which might be a very significant boost for sales. The effective price is now $74,130 (including the destination charge).
Let's recall that the Inflation Reduction Act of 2022 (IRA) requires prices to be now higher than $80,000 for crossover/SUVs, vans, pickup trucks. In the case of other vehicles (cars), the price cap is $55,000, which is the reason why the Model S does not qualify for the incentive.
On top of that, the company applied no-cost paint options for the Model S/Model X, which is another big change, because the top-of-the-line option of Ultra Red was listed for $3,000. The price of the Full Self-Driving (FSD) assistance feature was cut by $3,000.
We actually understand why Tesla is now offering free color options because otherwise, the Model X would exceed the $80,000 price cap for the federal tax credit if choosing anything other than the base color.
The changes seem to be making an impact - especially for the Model X - because the estimated delivery time extended to October-November. Previously, the estimated delivery time was the same month/next month, which would be September-October.
|Model||Base Price||Dest. Charge||Tax Credit||Effective Price|
|2023 Tesla Model S LR AWD 19-inch||$74,990||+$1,640||N/A||$76,630|
|2023 Tesla Model S LR AWD 21-inch||$79,490||+$1,640||N/A||$81,130|
|2023 Tesla Model S Plaid 19-inch||$89,990||+$1,640||N/A||$91,630|
|2023 Tesla Model S Plaid 21-inch||$94,490||+$1,640||N/A||$96,130|
|2023 Tesla Model X LR AWD 20-inch||$79,990||+$1,640||$7,500||$74,130|
|2023 Tesla Model X LR AWD 22-inch||$85,490||+$1,640||N/A||$87,130|
|2023 Tesla Model X Plaid 20-inch||$89,990||+$1,640||N/A||$91,630|
|2023 Tesla Model X Plaid 22-inch||$95,490||+$1,640||N/A||$97,130|
* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).
Specification-wise, the numbers remain the same.
|2023 Tesla Model S LR AWD 19-inch||AWD||405 mi||3.1||149 mph|
|2023 Tesla Model S LR AWD 21-inch||AWD||375 mi*||3.1||149 mph|
|2023 Tesla Model S Plaid 19-inch||AWD||396 mi*||1.99*||200 mph|
|2023 Tesla Model S Plaid 21-inch||AWD||348 mi*||1.99*||200 mph|
|2023 Tesla Model X LR AWD 20-inch||AWD||348 mi||3.8||149 mph|
|2023 Tesla Model X LR AWD 22-inch||AWD||330 mi*||3.8||155 mph|
|2023 Tesla Model X Plaid 20-inch||AWD||333 mi||2.5*||149 mph|
|2023 Tesla Model X Plaid 22-inch||AWD||311 mi||2.5*||163 mph|
* range numbers according to Tesla; acceleration time with subtracted rollout