Tesla just made its Model X more expensive—and in the process, it lost a key financial incentive.
$5,000 Price Hike Pushes Model X Over Tax Credit Limit
Late Thursday, Tesla raised the price of both Model X trims by $5,000, bringing the All-Wheel Drive version to $84,990 and the Plaid to $99,990. This increase pushes both trims over the $80,000 limit for the $7,500 federal EV tax credit, making the Model X ineligible for the incentive.
Why the Sudden Price Increase?
Tesla hasn’t provided an official reason, but several factors could be at play:
- Tariff pressures—Rising costs from supply chain issues and potential trade restrictions.
- Profit margins—Tesla may be looking to boost earnings on this low-volume model.
- A push toward the Cybertruck—With a similar price point, Tesla could be steering buyers toward its new flagship vehicle.
In Q4 2024, Tesla delivered 23,640 combined units of the Model S, Model X, and Cybertruck out of 495,570 total vehicles. While Tesla doesn’t break down these numbers by model, the Cybertruck likely made up a significant portion.
Is the Model X Becoming Obsolete?
The Model X has never been Tesla’s bestseller. Even Elon Musk called it a “niche product” back in 2019, saying:
“We’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
With Tesla now focusing on mass-market EVs and the Cybertruck, this price hike could be a signal that the Model X’s relevance is fading.
What’s Next?
For buyers, this means a $5,000 price jump and no tax credit relief. Will this drive potential Model X buyers to consider the Cybertruck instead? It seems likely.
This is Tesla’s first Model X price adjustment since July 2024, when it was raised by just $2,000. Could more changes be coming?
