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Home Electric Vehicles

Tesla’s price hike on Model X: What it means for buyers

David Ijaseun by David Ijaseun
February 7, 2025
in Electric Vehicles
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Tesla Model X EV

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Tesla has raised the stakes for its luxury EV market. The automaker increased prices for its Model X in the U.S. by $5,000, boosting the all-wheel-drive variant to $84,990 from $79,990. The plaid variant now costs $99,990, up from $94,990, according to Tesla’s website.

This marks Tesla’s second price adjustment in recent months. In December, the company raised the price of its Model S in the U.S. by $5,000. More recently, on February 1, it hiked prices across all models in Canada, signaling broader pricing changes within its portfolio.

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While Tesla hasn’t offered reasons for this price jump, industry analysts point to increased production efficiency. In January, Tesla revealed that the average material and labor costs for manufacturing its vehicles hit record lows in Q4 2024 due to declining raw material prices.

Still, Tesla remains focused on maintaining its competitive edge. Tesla has consistently worked to balance affordability with innovation.

The price changes arrive amid ongoing competition in the EV market. Buyers weighing premium EV options must now consider whether Tesla’s advanced features and expanding Supercharger network justify the higher price tag.

Read more on Tesla shares jump as Musk pledges cheaper EVs, robotaxis

Tags: electric vehiclesTeslaTesla Model X

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