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Tesla hikes Model X pricing by $5,000, losing EV tax credit qualification

Credit: Tesla

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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.

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”:

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“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.

Need accessories for your Tesla? Check out the Teslarati Marketplace:

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Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla top exec Tom Zhu highlights Elon Musk’s “prime directive” for FSD

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Credit: Tesla AI/X

Tesla Senior Vice President for Automotive Tom Zhu, a key executive behind the company’s success in China and Giga Texas, recently highlighted the “prime directive” of Full Self-Driving (FSD).

Zhu’s comments emphasize Tesla’s uncompromising focus on safety, which has made the company’s vehicles among the safest on the road.

Echoing Musk’s vision for safe autonomous driving

Zhu’s post quoted Musk’s statement from 2021, where the CEO reportedly stated that FSD must avoid accidents even if the most ridiculous events happened in the middle of the road. Zhu stated that beyond everything, Tesla’s systems like Autopilot and FSD are designed to keep passengers safe.

“Elon said it in 2021: “For self-driving, even if the road is painted completely wrong and a UFO lands in the middle of the road, the car still cannot crash and still needs to do the right thing. The prime directive for the autopilot system is: Don’t crash. That really overrides everything. No matter what the lines say or how the road is done, the thing that needs to happen is minimizing the probability of impact while getting you to your destination conveniently and comfortably,” Zhu stated.

“The prime directive, the absolute priority, is to minimize the probability of injury to yourself or to anyone on the road, to pedestrians, or anything like that. It can’t be dependent on the road markings being correct.”

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Tesla leadership rallies behind global FSD rollout

Tom Zhu, who previously led Tesla China through its record-breaking growth phase, now oversees automotive operations worldwide. He has reportedly become a problem solver for Elon Musk over the years, with previous reports stating that he was brought in to help Giga Texas optimize its vehicle production ramp.

Zhu’s comments may sound ambitious, but FSD has proven that it values safety above all else over the years. This was highlighted recently in an incident in Australia, when a Model Y was hit by what could very well be a meteor. Despite the impact and part of its windshield melting, the vehicle was able to drive safely and keep its passengers safe.

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Elon Musk’s biggest tech rival just canceled his Tesla Roadster

“I really was excited for the car! And I understand delays. But 7.5 years has felt like a long time to wait,” Altman said.

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Tesla Roadster at Tesla Battery Day 2020 Credit: @BLKMDL3 | Twitter

Elon Musk’s biggest tech rival just canceled his reservation for a Tesla Roadster, the supercar the company has been developing for nearly eight years.

Sam Altman, the CEO of OpenAI, announced on X on Thursday evening that he canceled his Tesla Roadster reservation, or at least is trying to:

Altman placed his Tesla Roadster reservation with a $50,000 deposit way back on July 11, 2018. However, he recently decided that he had waited long enough and decided to email the company to officially cancel the order.

“Hi, I’d like to cancel my reservation. Could you please refund me the $50k?” Altman emails to reservations@tesla.com.

He then received an immediate response, but not from Tesla. Instead, it was a bounce-back message from Google, stating that the message could not be delivered to the email because it was not active.

Altman then provided a reason for his cancellation, and it was not related to the intense rivalry he had with Elon Musk:

“I really was excited for the car! And I understand delays. But 7.5 years has felt like a long time to wait.”

Altman and Musk have a lengthy history with one another that dates back to 2015, when OpenAI was created. The feud has resulted in lawsuits over breaching founding agreements by prioritizing profits.

Musk has been especially critical in recent years because of Altman’s decision to turn OpenAI into a for-profit business that he says is “built on a lie.”

This year, Musk offered over $97 billion to buy OpenAI, and a judge blocked his request to stop the company from being converted into a for-profit in March.

OpenAI then countersued Musk in April, while xAI, Musk’s company, sued OpenAI for allegedly stealing secrets through poached employees in September.

Elon Musk explains why xAI sued OpenAI over alleged trade secret theft

Regarding the Roadster, Tesla has been developing it for several years and has delayed its release for five consecutive years. The company says it will have a demo of what it has changed since it was unveiled in 2017 later this year, but no date has been set quite yet.

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Neuralink’s first human patient reflects on 21 months with brain implant “Eve”

He credited Neuralink and Elon Musk for giving him “the opportunity to be the first,” as the experience has been life-changing.

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Credit: Neuralink

Nolan Arbaugh, the first person to receive Neuralink’s brain implant, shared his 21-month update this week, reflecting on how far he’s come since his groundbreaking surgery. 

Arbaugh, who became paralyzed after a diving accident, stated that his Neuralink implant, which he fondly calls “Eve,” continues to transform his daily life.

Arbaugh celebrates Neuralink’s progress

In his post on X, Arbaugh revealed that his hands-on involvement with Neuralink has decreased as more participants have joined the program. “The team might call me to test something once in a blue moon,” he wrote, adding that he’s happy to see others experience the technology’s full potential, from operating robotic arms to typing on keyboards with thought alone.

He credited Neuralink and Elon Musk for giving him “the opportunity to be the first,” as the experience has been life-changing. Despite a recent pressure sore that temporarily kept him bedridden, Arbaugh noted that he is still very optimistic, describing his journey as one of resilience, faith, and gratitude. He also teased “big news” coming for his two-year update in early 2026.

Studies and a growing public speaking career 

These days, Arbaugh stated that he is focused on his studies in neuroscience, taking full-semester courses in chemistry, biology, and pre-calculus while earning top grades. He credited “Eve” for making school possible again, as his current academic workload would have been “impossible without Neuralink.” Arbaugh stated that he has also begun building a speaking business after delivering a paid talk at Fortune’s Brainstorm Tech conference.

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“At the beginning of September I attended the Fortune Brainstorm Tech conference in Park City, Utah, as a paid speaker. That sentence seemed like an impossibility two years ago. But it’s just the beginning. My business is built, my legal is near complete, I’m surrounding myself with a team of amazing folks, and I plan on speaking once or twice a month in the same fashion beginning as soon as January. 

“Conferences, interviews, podcasts—you name it, and I want to be there spreading the word about how amazing this technology is, the growth it’s experiencing, the possibilities of the future, and how it has so deeply affected my life,” Arbaugh stated.

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