Tesla Unveils "Luxe Package" for Model S and X, Bundling Premium Features with Price Hike

Tesla is rolling out a new "Luxe Package" for its flagship Model S and Model X vehicles, bundling premium features and services. This move coincides with a $10,000 price increase for both models, aiming to enhance their appeal and potentially boost profit margins. The package offers significant value, including Full Self-Driving capabilities, extended premium maintenance, complimentary Supercharging, and enhanced connectivity.

"Luxe Package" Details

Tesla's "Luxe Package" is designed to provide a comprehensive ownership experience for Model S and Model X buyers. The package includes:

• Full Self-Driving (Supervised): Enables advanced autonomous driving features.

• Four-Year Premium Service: Covers wheel and tire protection, windshield protection, and recommended maintenance.

• Supercharging: Offers free charging at over 70,000 Supercharger stations worldwide.

• Premium Connectivity: Allows for music streaming, movie watching, and live traffic monitoring without Wi-Fi.

Value Proposition and Pricing

The combined value of these features is estimated to exceed $25,000, depending on usage. This significant value addition is offered alongside a $10,000 price hike for both the Model S and Model X. The updated pricing is as follows:

• Model S All-Wheel-Drive: $94,990

• Model S Plaid: $109,990

• Model X All-Wheel-Drive: $99,990

• Model X Plaid: $114,990

Strategic Move for Flagship Models

The Model S and Model X, while representing less than five percent of Tesla's total sales, are positioned as luxury offerings. This "Luxe Package" is particularly beneficial for high-mileage drivers who frequently use the vehicles for commuting or long-distance travel, with the free Supercharging being a major draw. This strategy aims to make these premium EVs more attractive in a competitive market.

Key Takeaways

• Tesla introduces a "Luxe Package" for Model S and Model X.

• Package includes Full Self-Driving, extended service, free Supercharging, and premium connectivity.

• A $10,000 price increase accompanies the new package for both models.

• The bundled value is estimated to be over $25,000.

• The move targets high-mileage drivers and aims to bolster sales of flagship models.