From hotel rooms to airfare, rent to eggs, nothing seems cheap these days. Underscoring this unfortunate development, according to Kelly Blue Book, the average new vehicle sold for just shy of $50,000 in December, an absolutely whopping number. Following this trend, on February 6, Tesla steeply increased the price of its Model X all-electric SUV.
Thousands Of Dollars More Expensive
In the U.S., this utility vehicle is now $5,000 pricier than before. This news was announced on the automaker’s consumer website, though no reason was given for the price boost. The standard all-wheel-drive model now starts at $86,630, a figure that includes $1,390 in destination fees and a $250 order fee. That outlay gets you a vehicle with a five-seat interior, a conventional round steering wheel as opposed to the yoke Tesla offers, and an EPA-estimated 329 miles of all-electric range.
Drivers who want more – and have deeper pockets – can still opt for the high-performance Plaid model. This variant of the Model X can accelerate from 0 to 60 mph in just 2.5 seconds, which practically feels like warp drive. As for range,
Without any options, this version of Tesla’s largest SUV checks out for just shy of $102,000 (naturally, including delivery and ordering fees).
Unfortunately for drivers, this price increase is not unprecedented. Back in December, the automaker also boosted the price of its Model S by $5,000. This sedan is closely related to the Model X SUV.
Declining Sales Drive Price Increases?
Tesla has been facing sales declines around the world. Deliveries have dropped significantly in the automaker’s home market of the U.S., but the company is also seeing steep declines in other global markets, including Australia, France, Germany, and the UK. Boosting the prices of the Model S sedan and Model X SUV could be a way of stemming declining profits as drivers around the world opt for non-Tesla vehicles.
There are several potential reasons why Tesla’s global deliveries are starting to sag. Prospective customers may have been holding off until the refreshed Model 3 sedan and Model Y SUV arrived, though some of the company’s other products are getting long in the tooth. Additionally, rival automakers keep introducing newer and more competitive electric vehicles, and then there’s Tesla CEO Elon Musk’s recent – and decidedly controversial – behavior. Musk’s actions could be a major reason why Tesla’s sales have fallen so significantly in Germany.
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