Tesla is relaunching its Model S and Model X vehicles in the United States with modest upgrades and a noticeable $5,000 price increase, as the electric vehicle (EV) maker attempts to counter slumping demand and regain market momentum.
According to The Verge, the updated Model S All-Wheel Drive (AWD) now starts at $84,990, while the high-performance Plaid variant begins at $99,990. The Model X AWD and Plaid versions have also seen price hikes, now retailing at $89,990 and $104,990, respectively. These adjustments mark Tesla’s first major updates since the refreshed Model Y was unveiled earlier this year.
The new versions come with incremental performance and design improvements. The Model S Long Range now offers a maximum of 410 miles on a full charge when equipped with 19-inch wheels — a slight five-mile improvement over the previous version. Tesla claims the updated exterior has been "optimized for high-speed stability," especially in the Plaid variant. Meanwhile, the Model X gains 2.5 cubic feet of additional cargo and third-row passenger space.
However, these enhancements come with trade-offs. The Model S Plaid is now 26 pounds heavier, and its top speed has dropped significantly from 200 mph to 149 mph. The Model X Plaid, even more affected, has gained 183 pounds in weight, although its top speed remains unchanged. Tesla has also removed its controversial yoke steering wheel as a standard feature for AWD versions — it’s now only available as a $1,000 add-on for Plaid models.
As reported by CBS News, Tesla highlighted improvements aimed at reducing “range anxiety,” a common concern among EV drivers worried about reaching charging stations in time. The company touted new wheel designs, aerodynamic tweaks, better suspension, and upgraded noise-cancellation features for a smoother, quieter driving experience.
The timing of this relaunch is notable. Tesla shares have taken a hit in June following CEO Elon Musk’s controversial involvement in the Trump administration’s Department of Government Efficiency (DOGE) and his public falling-out with former President Donald Trump. The resulting backlash has prompted some longtime Tesla owners to distance themselves from the brand, citing Musk’s polarizing public persona as a reason for offloading their vehicles.
Despite the price increase, Tesla appears to be betting that the combination of improved specs and a reputation for innovation will win back customers. Yet with increased competition in the EV space and continued scrutiny of Musk’s leadership, the road ahead may be anything but smooth for the EV giant.