Gary Zhou 
Key Takeaways
- Tesla has increased the prices of Model S and Model X by $10,000, raising the starting prices to $94,990 and $99,990 respectively.
- The ‘Full Self-Driving’ (FSD) package is now included with all Model S and Model X vehicles, previously costing $8,000.
- Tesla is reinstating free Supercharging for life, a perk that had been previously discontinued.
- A new “Four-year Premium Service” has been introduced, covering various maintenance needs.
- Premium Connectivity is now included, allowing access to features like live traffic visualization and streaming, typically charged at $10/month.
- Despite new features, there are concerns about sales declines for the Model S and Model X, which have been struggling in recent years.
In a groundbreaking move, Tesla has revamped its flagship Model S and Model X offerings by increasing their prices by $10,000. However, this price hike comes with a bouquet of premium inclusions, notably the ‘Full Self-Driving’ package, lifetime free Supercharging, and a newly introduced Four-year Premium Service. Let’s dive into what these changes mean for potential Tesla owners and the EV market at large.
Price Increase: A Closer Look
Tesla has set a new pricing benchmark with the Model S starting at $94,990 and the Model X at $99,990. While on the surface, a $10,000 increment might seem steep, Tesla provides a value-packed proposition with the addition of several features that cater to the luxury segment of electric vehicles.
What You Get with the Price Hike:
- Full Self-Driving (FSD) Package: Once a $8,000 aspirational feature, the FSD allows your Tesla to drive autonomously under certain conditions. It’s considered a Level 2 driver-assistance system but signals the future of autonomous travel.
- Lifetime Free Supercharging: Tesla is bringing back this much-loved perk, allowing users to charge at over 70,000 Superchargers globally. However, there are conditions; it’s non-transferable and not applicable for commercial use.
- Four-year Premium Service: The new Premium Service package encompasses maintenance essentials like tire and windshield protection, scheduled services, and replacements for filters and wiper blades, ensuring your Tesla remains in top-notch condition.
- Premium Connectivity: No need for a separate subscription anymore; this feature enables access to live traffic visualization, satellite-view maps, and video streaming, enhancing the Tesla ownership experience.
The Rationale Behind Including Premium Features
Tesla’s move to incorporate these high-value features seems to be directed at renewing interest and bringing back the allure in their flagship models. While the price increase might deter some potential buyers, the bundled offerings aim to offset the cost with substantial long-term savings and added convenience.
Sales Decline: An Area of Concern?
Despite these enhancements, the Model S and Model X have seen declining sales, a factor that might reflect market saturation or competitors tightening their grip in the luxury EV segment. Tesla’s strategy appears to focus on reinforcing brand loyalty by bundling more value, aiming to reverse the sales trend and position these models as definitive luxury vehicles.
Is It Worth It?
For potential owners, the decision boils down to how much usage you predict from these features:
- Frequent Long-distance Travelers: The free Supercharging could represent thousands in savings over years.
- Tech Enthusiasts: The allure of Full Self-Driving might offer the futuristic edge they crave.
- Luxury Seekers: Premium services and connectivity enhance the premium feel.
Ultimately, Tesla aims to cater to the upper echelon of EV buyers — those who appreciate cutting-edge technology bundled with luxury.
Tesla’s efforts to integrate leading-edge technology and luxury into its vehicles have never been more apparent. By reassessing the value offered through their Service packages and technological advancements like FSD, Tesla beckons keen early adopters and luxury car seekers. These strategic enhancements highlight Tesla’s ambition to maintain a competitive edge in the luxury electric vehicle market.
