While all the focus is currently on the Model 3, Tesla updated the Model S and Model X design studio by making the ‘Premium Upgrades Package’ standard on the non-performance versions of both vehicles.
The result is the base prices of the Model S and Model X have now increased, but both vehicles are getting the more premium features for less money.
The ‘Premium Upgrades Package’ used to be a $5,000 ($6,000 for Model X) package that includes features like the HEPA air filter with the ‘Bioweapon Defense Mode’ and a premium audio system specifically tuned for a Tesla featuring 11 speakers with neodymium magnets and 8″ subwoofer.
It also includes sub-zero features like heated seats for all passengers, heated steering wheels, and more.
The package was standard for the performance versions of the Model S and Model X, but now Tesla has also included it in the Model S and Model X 75D and 100D – making the package standard for all vehicles.
At the same time, Tesla increased the price of the vehicles by $2,500 for the Model S, which now start at $77,000 (Model S 75D), and $3,500 for Model X, which now starts at $83,000 (Model X 75D).
By absorbing the features into all models, Tesla made them less expensive by $2,500 as it streamlined the ordering process and production, but the base price is now more expensive and it is distancing itself more from the less expensive Model 3.
Over the last year, Tesla has made several similar changes to the Model S and Model X options and pricing to more clearly differentiate its more premium flagship vehicles versus the mid-luxury Model 3.
The impact of this move is pretty simple. For those ordering the Model S and Model X who didn’t want those features, it’s bad because it just unnecessarily increased the price of your purchase.
As for buyers who would want those features, it’s actually good news because they are now less expensive as a standard package.
Even though some feared that Model 3 would cannibalize the base version of the Model S, the standard version of the larger sedan is now arguably the best value it has ever been at $77,000 since Tesla made a ton of features standard including the Premium Upgrades Package today, but also air suspension, dual motor, etc.
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