Seemingly keeping pace with its volatile pricing strategy in recent months, Tesla has implemented a price increase on its two flagship vehicles, the Model S sedan and Model X SUV. Despite the price increase, however, the two vehicles remain more affordable compared to their cost last year.
According to Tesla’s website on Thursday, the base Model X now starts at $97,490, about 2.6% higher than its previous cost. The base Model S, on the other hand, saw a 2.9% price increase to about $87,490. The Model S Plaid and Model X Plaid, the company’s two fastest vehicles available today, are now priced at $107,490 before options.
It should be noted, however, that the Model S and Model X, despite their recent round of price adjustments, are still about 16%-23% more affordable compared to the start of 2023.
The current year has been a volatile time for Tesla’s vehicle prices. After mostly raising the prices of its cars last year, Tesla made waves in January by implementing massive price cuts to its entire lineup globally. Tesla’s prices have remained volatile since, with vehicles like the Model 3 and Model Y seeing small cost adjustments frequently.
Even the Model S and Model X saw volatility in pricing. Earlier this month alone, Tesla cut prices of the two flagship electric cars by $5,000, just days after releasing its first-quarter vehicle delivery and production report.
Tesla’s aggressive strategy has received polarizing responses from the company’s supporters. That being said, Musk noted during the first-quarter earnings call that Tesla would be prioritizing sales growth ahead of profit in a weak economy. Musk also noted that Tesla could do this because its cars could earn profit in the future, provided, at least, that the company achieves autonomous driving.
“Tesla is in a uniquely strong strategic position. Because we’re the only ones making cars that technically, we could sell for zero profit for now and then yield actually tremendous economics in the future through autonomy, no one else can do that. I’m not sure how many people will appreciate the profundity of what I’ve just said, but it is extremely significant,” Musk said.
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