Tesla increases Model S/X prices by $10k with new Luxe Package

Tesla has officially updated its Model S and Model X lineup in the United States, introducing a brand-new premium bundle called the “Luxe Package.” The update comes with a US$10,000 price increase across all trims, but the company argues that the added features provide far more value than the higher sticker price.

What’s Changed: Higher Prices, New Perks

As of Friday night, the starting prices of both the Model S and Model X trims in the U.S. increased by US$10,000:

• Model S AWD – US$94,990

• Model S Plaid – US$109,990

• Model X AWD – US$99,990

• Model X Plaid – US$114,990

Importantly, neither the price increase nor the Luxe Package applies in Canada, where Tesla has left pricing unchanged.

While the jump may initially surprise potential buyers, Tesla is positioning this move as a net value gain thanks to the Luxe Package being bundled directly into the base cost.

What’s Inside the Luxe Package?

The new Luxe Package isn’t just a cosmetic update—it includes several high-value features that would otherwise cost far more if purchased separately.

1. Full Self-Driving (Supervised)
   Every Model S and Model X now ships with FSD (Supervised), which normally costs US$8,000 as a standalone option. The feature allows the car to navigate city streets, highways, and complex intersections with minimal driver input, although drivers must remain attentive.

2. Four-Year Premium Service
   Tesla also added a 4-year Premium Service plan, covering common maintenance needs such as tire and windshield protection, wheel alignments, tire rotations, HEPA and cabin filter replacements, wiper blade changes, and front camera cleaning. For high-mileage EV owners, this alone could save thousands in maintenance costs.

3. Free Lifetime Supercharging
   Perhaps the most headline-grabbing feature is the return of free lifetime Supercharging. Owners can charge at Tesla’s vast North American Supercharger network without paying for electricity, though idle and congestion fees may still apply. Notably, this perk is non-transferable, meaning it stays with the original owner.

4. Free Lifetime Premium Connectivity
   The Luxe Package also includes lifetime Premium Connectivity, unlocking features such as live traffic visualization, satellite maps, in-car internet browsing, and music and video streaming. Previously, these were subscription-based services.

Why Introduce the Luxe Package Now?

Tesla’s decision appears to be driven by slowing demand for the Model S and X. In Q2 2025, Tesla reportedly sold only 5,000–6,000 units of its luxury sedans and SUVs in the U.S.—a steep drop from about 15,000 units a year earlier.

By bundling highly desirable features into the base price, Tesla hopes to revitalize sales of its premium lineup. While raising prices is rarely a tactic to boost demand, the company believes that the long-term perks—particularly free Supercharging and free Premium Service—make ownership more compelling for customers planning to keep their cars for many years.

Historical Context: Tesla’s Bundling Strategy

This isn’t the first time Tesla has used feature bundles to encourage sales. In 2024, the company introduced the “Drive Anywhere Package”, which included three years of unlimited Supercharging, Premium Connectivity, and other perks for US$5,000.

Shortly after launch, Tesla revised the offer: customers could instead pay US$10,000 total if they purchased Full Self-Driving for US$8,000 and added the Drive Anywhere Package for US$2,000. While the deal was temporary, it showed Tesla’s willingness to experiment with bundled incentives.

The Luxe Package is essentially a modern evolution of that strategy, but this time it’s standard across all trims, giving Tesla’s most expensive cars a more straightforward value proposition.

What This Means for Buyers

For potential buyers, the US$10,000 price bump is significant, but the total value of the Luxe Package arguably outweighs the cost increase.

• FSD (US$8,000) + Lifetime Supercharging (uncapped value) + Four-Year Premium Service (estimated thousands in savings) + Lifetime Premium Connectivity (previously ~US$99/year) means that Tesla is offering far more than the additional upfront cost.

• The catch is that many of these benefits—such as free Supercharging—only deliver maximum value if the buyer holds onto the vehicle long-term.

For short-term lessees or frequent upgraders, the perks may not be as impactful, since free Supercharging and Premium Service are tied to ownership.

The Bigger Picture

Tesla’s move to restructure the Model S/X lineup reflects both its challenges and ambitions. On one hand, sales of these luxury vehicles have been under pressure as consumer attention shifts to the more affordable Model 3 and Model Y, as well as Tesla’s newly launched Cybertruck. On the other hand, the Luxe Package signals Tesla’s commitment to keeping its flagship cars relevant by enhancing the ownership experience.

Whether the Luxe Package succeeds in reigniting demand remains to be seen, but one thing is clear: Tesla is once again betting that its unique approach to bundling technology and services will set it apart in the increasingly competitive EV luxury market.

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