Tesla Hikes Model S, X Prices Amid 2025 Sales Slump

Tesla unveiled upgraded versions of its Model S and Model X on Thursday, raising prices by US$5,000 amid declining sales in 2025. The all-wheel-drive Model S is now priced at US$85,000, while the Model X starts at US$90,000. The high-performance Plaid variants cost US$100,000 for the Model S and US$105,000 for the Model X. 

The updates include improved soundproofing to reduce wind and road noise, new wheel designs, enhanced aerodynamics for extended range, and a redesigned suspension for a smoother ride. The Model S offers a range of up to 410 miles, Tesla’s longest yet.

Tesla’s shares fell slightly on Friday, continuing a volatile trend with a roughly 35% drop from their peak last December. The company  is experiencing sales challenges, especially in Europe, where May marked the fifth straight month of declining sales in the UK, Germany, and Italy.

These struggles are attributed to rising competition from Chinese electric vehicle manufacturers with more competitive pricing, alongside controversies surrounding CEO Elon Musk’s political involvement. Still, demand for the new Model Y remains strong. Tesla expects sales to improve in June as the refreshed Model Y launches in the UK, aiming to bolster its market position against both traditional automakers and rapidly expanding Chinese EV brands.