Tesla Introduces Luxe Package for Model S and X with $10,000 Price Hike

Tesla has introduced a new Luxe Package for its Model S and Model X vehicles, raising prices by $10,000. The package includes Full Self-Driving, premium service coverage, free lifetime Supercharging, and Premium Connectivity, valued at over $25,000. The Model S and Model X account for less than 5% of Tesla's quarterly sales, but the company is using the Luxe Package to bolster margins on its flagship offerings.

Tesla has announced a new Luxe Package for its Model S and Model X vehicles, raising the prices by $10,000. The package includes Full Self-Driving (FSD), four years of premium service coverage, free lifetime Supercharging, and Premium Connectivity. The value of these add-ons exceeds $25,000, but Tesla has priced the bundle at $10,000 [1].

The Model S and Model X are traditionally lower contributors to Tesla’s overall sales, making up less than 5% of quarterly sales. However, the company is using the Luxe Package to bolster margins on these flagship offerings. The new package is particularly beneficial for high-mileage drivers who plan to use the vehicles for commuting or long drives, as the free lifetime Supercharging alone makes the deal worthwhile [1].

The introduction of the Luxe Package coincides with the end of the federal tax credit for electric vehicles, set to expire on September 30. Tesla has been pushing various promotional offers, including APR financing rates and free Supercharging, to capitalize on the remaining timeframe for tax incentives [1]. The company is also advertising on platforms like YouTube to boost sales before the tax credit expires [2].

While the Model S and Model X account for a smaller portion of Tesla’s sales, the Luxe Package is an innovative strategy to increase margins on these models. By offering a comprehensive package at a relatively low additional cost, Tesla aims to attract high-end customers who value luxury features and convenience. The success of this strategy will depend on the demand for these premium features and the ability to maintain the competitive edge in the luxury vehicle market.

References:
[1] https://www.notebookcheck.net/Model-Y-APR-financing-deal-to-be-phased-out-as-Tesla-shifts-free-lifetime-Supercharging-offer-to-Model-X.1088374.0.html
[2] https://www.teslarati.com/tesla-pushes-crazy-luxe-incentive-package-model-s-model-x/