Tesla Just Hiked The Price Of Its Flagship Models By $10,000 To Push A Crazy Incentive Package

Tesla has just rolled out something big for its top-tier cars. The company announced a new Luxe Package that comes bundled with the Model S and Model X, and it is paired with a $10,000 price increase. While some might see this as Tesla inflating prices, the package itself packs in a lot of value if you are the kind of driver who makes the most of premium perks.

So what exactly do you get? The Luxe Package bundles together some of Tesla’s most popular upgrades. Buyers receive Full Self-Driving (Supervised), the company’s most advanced driver assistance system that lets the car handle most of the driving under supervision. It also adds a four-year Premium Service plan that covers wheels, tires, windshields, and scheduled maintenance. Perhaps the most eye-catching incentive is free lifetime Supercharging across Tesla’s 70,000+ global Superchargers. To top it off, the package includes Premium Connectivity, which unlocks in-car streaming, live traffic visualization, and internet browsing even when you are away from Wi-Fi.

Tesla says the overall value of these perks adds up to more than $25,000. To break it down: Full Self-Driving normally costs about $8,000, lifetime Supercharging can be worth anywhere from $10,000 to $15,000 depending on usage (Tesla recently pegged it closer to $5,000), Premium Connectivity is about $1,000, and the service plan is valued at around $3,200. Put together, the Luxe Package easily justifies the $10,000 premium for customers who take advantage of every benefit.

The catch is that the package is mandatory. Buyers cannot opt out of it, meaning the higher price tag is now the standard cost of entry for both the Model S and Model X. After the adjustment, the new lineup looks like this:

  • Model S All-Wheel Drive: $94,990
  • Model S Plaid: $109,990
  • Model X All-Wheel Drive: $99,990
  • Model X Plaid: $114,990

Tesla’s decision also comes as sales of the Model S and Model X continue to lag behind the more affordable Model 3 and Model Y, which together account for the overwhelming majority of Tesla’s quarterly deliveries. The flagship models now make up less than 5 percent of sales, so the Luxe Package may be Tesla’s way of making them feel more exclusive while improving margins.

If you are a driver who racks up long-distance miles or loves the idea of never paying for charging again, the Luxe Package could feel like a smart investment. For others, it may feel like an expensive bundle you are forced to take, even if you do not really need all the extras.

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