Throughout the year, Tesla has consistently been raising prices across their vehicle lineup. A few days into the third quarter, the trend has continued. The latest price increases are to the Model S and Model X.
Long Range Model S price increased by $5,000, from $84,990 to $89,990.
Long Range Model X price increased by $5,000, from $94,990 to $99,990.
Tesla did not adjust pricing on the Plaid versions of S/X. Model 3 and Model Y prices were unchanged. The table below shows Tesla's price adjustments in the US this year.
While it had not been entirely clear whether Tesla's continued price increases were due to rising costs, rising demand, or both, Tesla's strong Q2 earnings report suggests the adjustments are more of a reflection on demand. Tesla CFO Zach Kirkhorn noted that Q2 resulted in Tesla's best automotive gross margin (excluding regulatory credit sales) since the introduction of the Model 3.
Tesla did acknowledge losses on the Model S and Model X lineup in both the first and second quarters of 2021, but the losses were primarily due to low levels of production as Tesla ramps up following the refresh of both vehicles.
Currently, Tesla estimates new orders for Long Range Model S and Model X won't be fulfilled until February-March of next year. With such a long order backlog, Tesla is in a strong position to raise prices.
Disclosure: Rob Maurer is long TSLA stock and derivatives.