On Thursday, Tesla announced the launch of updated Model S and Model X electric vehicles in the United States, introducing a $5,000 price increase alongside subtle design and performance enhancements. The Model S now starts at $84,990, while the Model X begins at $89,990, with deliveries already underway. The upgrades include a more aerodynamic design, revamped suspension, improved noise cancellation, and aesthetic tweaks, as highlighted in a post on X. The price hike has sparked mixed reactions, with some praising the refinements and others criticizing the lack of groundbreaking innovations. The Model S Long Range now boasts up to 410 miles of range, making it Tesla’s longest-range vehicle. However, the absence of advanced technologies, like the 48-volt architecture used in the Cybertruck, has raised questions about the value of the updates.
Tesla’s shares rose 1% on Monday following the announcement, though they remain 18% lower for 2025. The company is navigating a competitive market and public scrutiny after recent controversies involving CEO Elon Musk. Below, we explore the key changes, market context, and consumer reactions.
What’s new in the updated models
The refreshed Model S and X feature incremental improvements aimed at enhancing comfort and aesthetics. The Model S sports new 19-inch Magnetite wheels, which Tesla claims add five miles to its range through better aerodynamics. The Model X introduces 20-inch Perihelix and 22-inch Machina wheels, blending style and efficiency.
The suspension has been reworked with new bushings for a smoother ride, and noise cancellation has been improved, though Tesla hasn’t provided specific data to quantify the change. Inside, both models offer customizable ambient lighting, a feature already seen in the Model 3 and Y, along with exclusive animations on the dashboard and doors. A front-facing camera, designed to enhance road condition detection for driver-assistance systems, marks one of the few technological advancements.
- Key upgrades in Model S and X:
- Aerodynamic design with new wheels and optional Frost Blue paint ($2,500).
- Redesigned suspension for improved comfort and handling.
- Customizable ambient lighting and unique interior animations.
- Front-facing camera for advanced driver-assistance systems.
- Model S Long Range extended to 410 miles of range.
While these changes refine the driving experience, the lack of bold innovations has left some fans wanting more. Tesla’s focus on subtle tweaks rather than major technological leaps has fueled debates about the models’ premium positioning.
Price hike and market dynamics
The $5,000 price increase pushes the Model S Long Range to $84,990 and the Plaid variant to $99,990. The Model X starts at $89,990 for the all-wheel-drive version and reaches $104,990 for the Plaid. This adjustment disqualifies the Model X from the $7,500 federal tax credit in the U.S., as its base price now exceeds the $80,000 cap for electric SUVs.
Analysts suggest the price hike reflects rising production costs and Tesla’s aim to boost margins amid sluggish sales. In 2024, Tesla delivered just 84,133 units of the Model S, Model X, and Cybertruck combined, compared to 1.7 million Model 3 and Y vehicles. In Q1 2025, deliveries of “other models” (including S, X, Cybertruck, and Semi) totaled 12,881 units, underscoring their limited share of Tesla’s portfolio.
Consumer and expert feedback
Reactions to the updates are mixed. Posts on X show some owners appreciating the enhanced range and comfort, while others feel the changes don’t justify the price increase. Many note that features like ambient lighting are already standard in the more affordable Model 3 and Y, diluting the premium appeal of the S and X.
Industry experts have echoed these concerns. The omission of technologies like steer-by-wire or the 48-volt architecture found in the Cybertruck is seen as a missed opportunity. The Model S Plaid also gained 26 pounds and saw its top speed drop from 200 mph to 149 mph, disappointing performance enthusiasts. The Model X Plaid, with an additional 183 pounds, has faced similar criticism despite retaining its top speed.
Tesla’s strategy amid competition
Tesla operates in an increasingly crowded electric vehicle market, with rivals like Rivian, Lucid, Mercedes-Benz, and BMW vying for the luxury segment. The Model S and X, though iconic, account for a small fraction of Tesla’s revenue. The 2025 updates aim to keep these models relevant as technological showcases, even as the Model 3, Y, and Cybertruck dominate sales.
The price increase aligns with Tesla’s push for higher margins, especially as its stock has declined 18% in 2025. Incentives like free Supercharging for Model S buyers, introduced for orders after December 13, 2024, aim to soften the blow. However, with many buyers relying on home chargers, the appeal of such offers may be limited.
Design and functionality tweaks
Beyond technical upgrades, Tesla emphasized aesthetic enhancements. The optional Frost Blue paint ($2,500) and a matte-finish front logo replace the previous chrome design. The Model S Plaid features a redesigned rear diffuser and front fascia, though the changes are subtle.
Inside, Tesla maintains its minimalist approach, with no physical buttons and a heavy reliance on the touchscreen. The yoke steering wheel, previously standard, is now a $1,000 option on Plaid variants, addressing ergonomic complaints. Customizable lighting and animations aim to create a more immersive cabin experience.
Recent updates timeline
The Model S and X have seen several revisions to stay competitive:
- 2021: Interior overhaul with yoke steering and 17-inch central display.
- 2023: Price cuts to boost demand, with Model S starting at $74,990.
- 2024: Free Supercharging offered to clear year-end inventory.
- 2025: $5,000 price increase with focus on aerodynamics and range.
This timeline reflects Tesla’s balancing act between innovation and market pressures, though maintaining the models’ allure remains challenging.
Production and logistical hurdles
The Model S and X rely on Panasonic’s 18650 battery cells, imported from Japan, unlike the locally produced 4680 cells used in the Model 3 and Y. This increases manufacturing costs and complicates logistics. Some analysts believe Tesla could redesign these models to use 4680 cells, but the company appears committed to their current architecture.
Low demand adds pressure. With combined 2024 sales of the S, X, and Cybertruck far below the Model 3 and Y, speculation about phasing out the premium models persists. Tesla’s engineering VP, Lars Moravy, has emphasized the emotional significance of the S and X, signaling continued investment despite challenges.
Incentives to drive sales
To offset the price hike, Tesla offers free Supercharging for Model S buyers in the U.S., tied to the owner’s account for orders after December 13, 2024. Additional perks include $1,000 discounts via referral codes and free Full Self-Driving (FSD) options. These incentives target buyers hesitant about the higher costs, though their impact may be limited for those with home charging setups.
Positioning in the luxury EV market
The Model S and X remain benchmarks in the luxury EV space, but competitors like the Lucid Air and BMW i7 offer advanced tech and premium finishes. Tesla leans on its performance, range, and software, like FSD, to stand out. The 2025 refresh, while modest, underscores Tesla’s intent to keep these models as innovation flagships, even as it prioritizes mass-market vehicles.