In a surprising move, Tesla has dropped the base price of its Model S and Model X vehicles by $3,000 and $2,000 respectively.
The base Model S model now starts at $75,000 (previously $78,000) while the base Model X starts at $81,000 (adjusted from $83,000). This price cut comes after Tesla removed the software-limited Standard Range models from its Model S and Model X vehicles then decided to offer them once again as the base configuration, thereby making the starting price of its high-end vehicles more accessible to a larger market.
Tesla recently upgraded its Model S and X vehicles at the end of April to include a more efficient motor which improves the range on all configurations, along with other minor changes. Impressively, this enables the Standard Range Model S to feature a starting EPA range of 285 miles with a 4.0 second 0-60, with up to 370 miles of range available on the Long Range configuration. Model X also includes a base range of 250 miles, which is upgraded to 325 miles on its Long Range configuration.
We feel it pertinent to remind prospective buyers that all configurations of Model S and Model X come standard with Dual Motor All-Wheel Drive, adaptive air suspension, and a premium interior that includes premium sound.
This 2-3% price drop comes without a formal announcement by Tesla, who regularly adjusts pricing and options.
After Tesla raised the price of all Model 3 variants (including a new $35,400 base price) last week presumably in response to tariffs, it is surprising to see Model S and X receive relatively significant price cuts. We can speculate that this is either in response to decreased demand or cost-cutting measures Tesla has recently undergone, though it is likely due to a mixture of both. Model 3 may be cutting into the demand for the Model S and Model X now that all configurations are widely-available.
These changes do depreciate older Model S variants, though to Tesla’s credit other manufacturers constantly adjust prices on a dealership-level so Tesla’s pricing is more transparent.
We expect further adjustments, including an interior redesign, later this year. Though with the new higher value and starting range, we would recommend ordering whenever is most convenient rather than waiting for future changes.
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