Tesla’s flagship models, the Model S and Model X, have struggled with weak demand in recent years, despite receiving minor updates intended to keep them appealing in the premium EV market. Now, in a surprising turn, Tesla has introduced a significant $10,000 price increase for both vehicles in the U.S., while packaging the hike as a “higher value” offering.
The updated pricing strategy means that while buyers will be paying more upfront, Tesla is sweetening the deal by bundling in several premium perks that were previously sold separately. Among these inclusions are the Full Self-Driving (FSD) package, free lifetime Supercharging (restricted to the original owner), Premium Connectivity, and a brand-new Premium Service plan covering four years of scheduled maintenance.
One of the biggest highlights of this new package is Tesla’s Full Self-Driving (FSD) software, which typically costs $8,000 as an add-on. For many buyers, the inclusion of FSD might make the price increase easier to justify, given that it remains one of Tesla’s most ambitious and advanced offerings. While still not fully autonomous, FSD provides features like Navigate on Autopilot, Auto Lane Change, Smart Summon, and Traffic Light and Stop Sign Control, with continued updates pushed via over-the-air software improvements.
By bundling FSD directly into the Model S and Model X, Tesla is likely aiming to increase adoption of the system, as many customers have historically been hesitant to purchase it separately due to its steep cost and ongoing regulatory hurdles.
Another major perk making a comeback is free lifetime Supercharging, a benefit that early Tesla adopters enjoyed but was eventually phased out after the company labeled it “unsustainable.” Under this revised offer, free charging at Tesla’s extensive Supercharger network is again included, but with one important limitation: it is tied exclusively to the original owner and does not transfer if the vehicle is resold.
This restriction ensures Tesla doesn’t lose long-term revenue from the resale market, but it still provides a valuable incentive for new buyers who plan to keep their vehicles for several years.
Tesla is also bundling in Premium Connectivity, a feature that enhances the in-car infotainment experience. Normally priced at $10 per month or $100 annually, Premium Connectivity offers services like live traffic visualization, satellite-view maps, video streaming, and improved internet bandwidth. While not a huge expense on its own, the inclusion adds another layer of appeal for buyers of Tesla’s high-end EVs.
Perhaps the most noteworthy new addition is Tesla’s Premium Service plan, included for four years with the purchase of a Model S or Model X. This plan covers scheduled maintenance items that would otherwise cost extra, including wheel alignments, tire rotations, front camera cleaning, and HEPA filter replacements. On top of that, the package includes tire and windshield protection, which adds peace of mind for owners who want to minimize unexpected service expenses.
This move marks a rare shift for Tesla, which has historically marketed its cars as requiring less maintenance than traditional vehicles. By offering a comprehensive service plan, Tesla may be addressing customer concerns about ownership costs while simultaneously reinforcing the “luxury” positioning of its flagship models.
On paper, the combined value of these perks exceeds the $10,000 increase, which Tesla claims makes the package worthwhile. However, In reality, sales of the Model S and Model X have already been sluggish, and raising prices may only push potential buyers further away.
It’s also clear that Tesla is attempting to push more of its software-driven features like FSD and Premium Connectivity by embedding them into the purchase price rather than relying on optional upgrades. Whether this strategy boosts demand or dampens it remains to be seen.
With the EV market becoming increasingly competitive, Tesla is taking a gamble by making its luxury offerings more expensive while presenting them as higher-value packages.
What are your thoughts on Tesla’s decision to raise prices on the Model S and Model X while bundling in software and service perks? Do you see this as a smart value-driven strategy, or a risky move that could further hurt sales? Let us know in the comments below!
