To address its revenue shortfall, Tesla, owned by Elon Musk, has raised the prices of its Model X electric vehicles (EVs) in the United States by $5,000. The price hike was implemented on Thursday.

Following the increase, the Tesla Model X all-wheel drive now costs $84,990, up from its previous price of $79,990. Similarly, the Model X Plaid variant has been raised to $99,990 from $94,990, according to Tesla’s official website, as reported by Reuters.

This move follows a similar price increase in December 2024 when Tesla raised the cost of its Model S EVs in the US by $5,000. However, in Canada, the entire Tesla lineup experienced a uniform $5,000 price hike, which took effect on February 1.

Although Tesla has not provided a clear reason for the price increase, it aligns with the company’s broader strategy to manage production costs. Last month, Tesla reported a significant drop in the average cost of raw materials and labor, which helped reduce manufacturing expenses by the fourth quarter of 2024.

The company continues to navigate financial challenges while balancing production efficiency and pricing adjustments.

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