Tesla will elevate the pricing of its flagship Model S and Model X fleet to a new level following a significant upgrade and a $10,000 increase in base pricing. The refreshed Model S and X saw a $5,000 price increase on the day of their launch. The rise in pricing is accompanied by a package of premium features that will help regain some of the shine in the eyes of the luxury crowd. The decision follows Tesla’s struggle with declining interest in its luxury vehicles, despite moderate refreshes over the past few years.
The Luxe Package, the new bundle, is now incorporated in every purchase of Model S and Model X. It combines the most desirable options offered by Tesla, many of which were optional previously, and reinvents old magic again: lifetime free Supercharging.
Luxe Package Inclusions: What Is Included?
The package combines four important benefits, as Tesla claims, which would bring considerable long-term value:
- Full Self-Driving (FSD): Previously, FSD was offered as an optional $8,000 package; now it is standard in the Model S and Model X settings. Although Tesla still treats FSD as a Level 2 autonomous driver-assistance feature that requires the supervision of a driver, it is the long-term bet that the company places on autonomy. For buyers who already intended to buy FSD in the first place, this virtually cushions the shock of the base price increase of $10,000.
- Four-Year Premium Service Plan: Tesla will offer the most competitive service plan that covers tire and windshield protection, routine maintenance, and scheduled replacements like HEPA filters, cabin filters, and wiper blades. It also contains wheel alignments, tire rotation, and cleaning of the front camera. This is a change from a historically sparse service rate at Tesla and can be seen as a part of its effort to reassure owners of long-term reliability.
- Lifetime Supercharging (Free): There was a time when Lifetime Supercharging was a benefit of early Tesla ownership, but this program ceased as of 2018 because it could no longer be sustained. It is back now, but there are some caveats. This perk follows the original owner and can not be transferred upon the sale of the car, nor is it to be used in a legal business capacity like ridesharing or delivery. Tesla has the prerogative to withdraw it in the event of misuse being identified. Idle and congestion fees are still imposed on owners.
- Premium Connectivity: Normally costing $10 per month or $100 per year, Premium Connectivity allows the viewing of live traffic visualization and satellite maps, video streaming, and data-intensive functions.
The Price Switch
The Model S with the Luxe Package now goes for $94,990 up to $109,990 in the Plaid model. The Model X begins at $99,990, but there is a high-performance trim, which is referred to as the Plaid, and sells at a price of $114,990.
Although $10,000 is not a minor sum, Tesla has bet that the added package will attract buyers who prioritize comfort, convenience, and long-term ownership perks.
What Does Free Supercharging Have?
Nothing on the Luxe Package has been more contentious than the introduction of lifetime free Supercharging. The value will be highly susceptible to the usage of the vehicles in the hands of owners.
One of the Tesla owners did the math:
- Driving 15,000 miles annually at 3.5 miles per kWh requires about 4,286 kWh per year.
- At an average price of Superchargers of $0.35/kWh, this would save around $1,500 a year, or $15,000 after 10 years of exclusively charging at Superchargers.
- Nevertheless, most owners charge more at home, where average U.S. residential electric tariffs are nearer to $0.18/kWh. Under such circumstances, annual prices would decline to around $771, and the free Supercharging is even nearer to $800 a year—that is, about $8,000 in a decade.
So, free Supercharging may be extremely valuable to avid road-trip travelers, but a lot less valuable to those who predominantly charge at home.
