Tesla has once again made headlines by upgrading its flagship luxury vehicles—the Model S and Model X—and simultaneously raising their prices by $5,000 in the U.S. market. While price increases aren’t new for Tesla, this move comes with significant hardware and software improvements, aimed at further solidifying Tesla’s dominance in the premium EV segment. For current Tesla owners and potential buyers alike, understanding the nature of these upgrades and how they compare to competitors is crucial in 2025's rapidly evolving electric vehicle landscape.
Details of the Upgrade
The 2025 refresh focuses on three main areas: performance, interior innovation, and driver experience.
Performance Enhancements
Tesla has slightly improved the powertrain in both models, increasing efficiency and acceleration while maintaining the long range that made these vehicles popular. The dual-motor Model S now reportedly achieves 0–60 mph in 3.1 seconds, while the Plaid version continues to dominate at under 2 seconds.
Updated Interior
Tesla has redesigned the cabin with better materials and more ergonomic seating. Alcantara trim, ventilated seats, and enhanced ambient lighting now come standard. A new “Smart Climate” AI learns user preferences over time, adjusting cabin temperature, airflow direction, and even fragrance diffusion based on driver behavior.
Infotainment & Tech
A faster infotainment processor powers a more responsive 17-inch center touchscreen and rear display. Improved Bluetooth multipoint pairing and spatial audio enhance the entertainment experience. The vehicles now support Tesla’s upgraded FSD (Full Self-Driving) beta v12.2 and are ready for Level 4 autonomy, pending regulatory approval.
Price Adjustment Breakdown
As of June 2025, Tesla’s website shows the base price of the Model S at $89,990 (up from $84,990), and the Model X starting at $99,990 (up from $94,990). The Plaid versions also see a similar increase.
This puts Tesla closer in pricing to traditional luxury automakers such as:
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Lucid Air Touring ($87,500)
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BMW i7 ($105,700)
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Mercedes-Benz EQS ($104,400)
The price hike might appear steep, but the feature set and continual software updates arguably justify the cost, especially when compared to the static offerings of legacy automakers.
Impact on Customer Sentiment
Initial reactions from the Tesla community have been mixed. Enthusiasts appreciate the continued innovation and the new features, particularly the smarter cabin tech and performance gains. However, some potential buyers—especially those cross-shopping other luxury EVs—express hesitation over the pricing.
On Tesla forums and Reddit communities, many buyers argue that the software-driven upgrades and access to future autonomous driving capabilities justify the higher price tag. Others worry that frequent price changes create uncertainty and make financial planning difficult.
Tesla’s Premium Strategy in 2025
Tesla’s move seems clear: elevate the S and X as exclusive flagship vehicles that serve as both technological showcases and aspirational products. With the Model 3 Highland and Model Y Juniper covering the mass market, and the Cybertruck capturing utility and design-focused buyers, the Model S and X now firmly occupy the luxury tier.
Tesla’s refusal to include any physical buttons—even in luxury trims—emphasizes its minimalist and software-first philosophy. The company continues to bet that buyers will prioritize innovation over tradition, and early signs show that this strategy is working.
Should You Buy Now?
The 2025 versions of the Model S and Model X are designed for those who want the pinnacle of Tesla’s innovation without compromise. Whether you’re an early adopter of FSD or a luxury EV buyer cross-shopping Lucid and BMW, these models offer a compelling value proposition.
Here are a few scenarios where buying now makes sense:
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Tech enthusiasts who want access to cutting-edge autonomous features.
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EV owners upgrading from a Model 3/Y or from another brand’s luxury EV.
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Buyers who prioritize interior comfort, range, and resale value.
Tesla is currently quoting delivery times of 4–6 weeks, though availability may tighten as demand ramps up following the announcement.
Conclusion
Tesla’s $5,000 price increase for the Model S and X in 2025 reflects not just inflation or supply chain factors—but a strategic pivot to position these vehicles as premier luxury EVs. The upgrades introduced are both practical and forward-looking, with a strong emphasis on AI-powered comfort, performance, and future-ready tech.
As always, Tesla is redefining what premium means in the electric vehicle space. For buyers in the U.S. and Europe, the new Model S and X represent not just a product, but a long-term tech investment.
