Tesla has just raised the price of the Model X by $5,000, marking the first price hike for the vehicle since mid-2024.
The move, which took place late Thursday evening, now places both trims of the Model X above the $80,000 limit required to qualify for the Federal EV Tax Credit of $7,500.
Here’s the updated pricing:
- Model X All-Wheel Drive: $84,990
- Model X Plaid: $99,990
This unexpected price increase raises several questions: Why now? What does this mean for Tesla’s lineup? And, most importantly, is Tesla subtly steering customers toward the Cybertruck instead?
What’s Behind the Price Hike?
There could be several reasons why Tesla decided to raise the Model X’s price at this time. Here are the most likely factors:
- Tariff and Cost Pressures: With rising costs in the supply chain and increasing pressure from potential tariffs, Tesla could be adjusting its pricing to protect margins.
- Improving Profit Margins: The Model X is a low-volume vehicle, meaning Tesla doesn’t sell as many of them as the Model 3, Model Y, or even the Cybertruck. Raising its price could help Tesla maintain profitability in this niche segment.
- A Push Toward the Cybertruck: This is perhaps the most interesting possibility. The Model X’s price increase, combined with its loss of the $7,500 tax credit, might make consumers seriously reconsider their purchase—and Tesla has another, highly anticipated vehicle sitting in a similar price range: the Cybertruck.
Does Tesla Want Buyers to Choose the Cybertruck Instead?
Tesla has been clear about the fact that the Model X and Model S are no longer core to the company’s future. CEO Elon Musk even admitted back in 2019 that Tesla continues making these vehicles for “sentimental reasons” rather than business necessity.
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.” —Elon Musk
That statement was made years ago, but it seems even more relevant today.
In Q4 2024, Tesla delivered 495,570 vehicles, but only 23,640 of those were from the Model S, Model X, and Cybertruck combined.
While Tesla doesn’t break down its sales by model, it’s highly likely that the Cybertruck made up the majority of that number—leaving Model X and Model S with very low sales figures.
Now that the Model X costs $84,990, it no longer qualifies for the $7,500 tax credit. The Cybertruck, on the other hand, still does. This alone could shift consumer interest away from the Model X and toward Tesla’s futuristic truck.
Will the Price Increase Affect Model X Sales?
For most Model X buyers, a $5,000 increase probably won’t be a deal-breaker. At this price point, most customers are already Tesla enthusiasts who love the vehicle for its design, spacious interior, and Falcon Wing doors.
However, the loss of the EV tax credit is a much bigger deal.
With this new pricing, some potential Model X buyers might start looking at other options. The Cybertruck, for instance, offers a similarly premium experience with cutting-edge technology—and with the federal tax credit still in play, it might be the more financially attractive option.
Tesla’s Pricing Strategy: A Pattern of Change
Tesla is no stranger to price fluctuations. The last time the Model X saw a price increase was in July 2024, when Tesla raised the price by just $2,000.
This time, the jump is significantly higher at $5,000, and it comes at a time when Tesla is focusing heavily on the Cybertruck and mass-market models like the Model 3 and Model Y.
What’s Next?
With Tesla’s focus shifting away from low-volume luxury models, it wouldn’t be surprising if the Model X continues to see changes in pricing and availability. The question now is:
- Will Tesla offer any new incentives to offset the tax credit loss?
- Will the Cybertruck continue gaining momentum, making the Model X even more irrelevant?
- Could Tesla eventually phase out the Model X and Model S altogether?
What Do You Think?
Is this price increase a sign that Tesla is moving away from the Model X? Would you still buy the Model X at this price, or does the Cybertruck now seem like the better deal?
Drop your thoughts in the comments!