Listen, I’ve been watching Tesla for years. I was shocked when Elon Musk’s company initially raised the prices of the Model S and Model X by ten grand this summer.
But therein lies the rub; after examining what that extra money buys you, I’m thinking this might well be Tesla’s smartest play in a long time.
The Numbers Game That’s Got Everyone Talking
Let’s cut to the chase. In the United States, the Model S and Model X have jumped $10,000 in cost; however, here’s where it gets a bit spicy. Tesla didn’t settle for just raising prices and being done with it. They tied it together with what they’re christening the “Luxe Package” and, boy, does it pack a punch.
I recall my neighbor getting his Model S three years ago. He paid extra for Full Self-Driving, shelled out for premium connectivity, and don’t even get me started on how much he spent at Supercharger stations during our road trip to Colorado. Now? All that stuff is standard now with the Tesla Model S and X price increase features package.
What’s Actually in This Luxe Package?
Here’s what Tesla is throwing in for that extra ten thousand bucks:
- Full Self-Driving (FSD) capability
- Free Supercharging for life
- Premium Connectivity forever
- Premium Service for four years
And when you do the numbers, that’s one heck of a deal. The controversial FSD Supervised feature commands an $8,000 price for the Model 3 and Model Y versions, so at first glance it looks like a good deal even considering free Supercharging that also gets thrown in.
My buddy who works for a Tesla dealership in Austin told me that customers are actually pretty happy about this change.
Sure, the sticker shock is real, but when they realize they’re getting lifetime Supercharging, which can save thousands per year, most folks come around.
The Real Improvements That Matter
In addition to the fancy package deals, Tesla also made some practical tweaks that actually enhance daily driving. The interiors of the new Model S and Model X will be quieter, with reduced wind and road noise and an improved Active Noise Canceling system, according to the firm.
Last month I test-drove the updated Model X and you can feel the difference. The cabin is more polished and almost luxury-car quiet. And not only did Tesla throw in dynamic ambient lighting animations and updated suspension components, but the company also added a new Frost Blue paint option that looks stunning in person.
For families, the Model X got some love too. Other upgrades to the vehicles include a new suspension design for a smoother ride and more space for third-row passengers and cargo for Model X vehicles. That third-row area was such a tight squeeze but now, it’s actually usable for adults on shorter runs.
The Strategy Behind the Madness
This is why, I think, Tesla did this. The Model S and Model X have been their problem children for a while now. Sales were falling, and Tesla needed to take drastic action. Instead of slashing prices and beating the competition to the bottom like everyone else, they went in the opposite direction.
This Tesla Model S X price increase features strategy is basically Tesla saying, “Look, we’re not competing with budget EVs. We’re going after Mercedes, BMW, and Audi.” And honestly? That makes sense.
Think about it this way – a fully loaded Mercedes EQS or BMW iX can easily hit $120,000. Tesla’s new Model S, even with the price bump, still undercuts these luxury competitors while offering better tech and that Supercharger network advantage.
The Real-World Impact
I’ve talked to several Tesla owners about these changes, and the reactions are mixed but generally positive. Sarah, who owns a Tesla Model Y in Phoenix, told me she’s actually considering upgrading to the new Model S specifically because of the lifetime Supercharging. “I drive about 30,000 miles a year for work,” she said. “That free charging could save me $3,000 annually.”
On the flip side, some potential buyers are put off by the higher entry price. Mark from Denver was shopping for a Model S but decided to wait. “I don’t need FSD,” he told me. “I just want a fast, electric sedan.”
What This Means Going Forward
Tesla’s move is intriguing because it runs counter to most other automakers. At a time when others are slashing prices on their cars in a bid to compete, Tesla is betting that buyers will pay more for premium features when they are bundled together.
The company is in effect saying goodbye to bargain hunters and targeting customers for whom the full Tesla experience holds value. It’s a complete gamble, but it could work. I mean, after all, Tesla’s Supercharger network is still the gold standard and FSD, although a controversial issue, is also currently ahead of the pack.
The Bottom Line
Is the Tesla Model S X price increase features package worth it? It depends on what you care about. If you’re the kind of person who would have purchased FSD anyhow, plan on driving your car for many years and do plenty of road tripping, then yes, this is a good deal.
But if all you seek is a quality electric sedan, more of a no-frills package, you might want to look elsewhere. It’s clear that Tesla has decided they would prefer to sell a lower number of cars with higher margins than go the volume route with budget models.
As someone who has followed Tesla since the first days of the original Roadster, I believe this is a confident move. They’re not concerned with competition, but they are creating their own premium category. Whether that strategy works out is another question, but one thing seems clear: Tesla isn’t playing it safe anymore.