Tesla Hikes Prices On The Model X Plaid In U.S. By $5,000 — Model 3, Y Vehicles Get A Price Cut In Canada

EV giant Tesla Inc TSLA has increased the price of its Model X Plaid in the U.S., merely a day after CEO Elon Musk spoke about cutting vehicle prices so as to make them more affordable in an environment of rising interest rates.

The vehicle is now priced at $5,000 or nearly 5.6% higher on the company website at $94,990. The vehicle was previously priced at $89,990. Despite the recent price hike, the vehicle continues to be way cheaper than at the onset of the year when it was priced at over $130,000.

The prices on all other models remain unchanged, including that of the Model X all-wheel drive.

Price Cuts In Canada: Tesla has also simultaneously cut prices on its lower-end Model 3 and Y vehicles in Canada. Model 3 RWD and Long Range are now priced C$1,000 ($729) lower at C$53,990 ($39,373) and C$63,990 ($46,665), respectively.

The price on the performance version, however, remains unchanged. As for the Model Y, all three versions are now priced C$2000 ($1,458) less in Canada with the lower-priced version Model Y rear-wheel drive starting at C$57,990 ($42,290).

What Musk Said: During the company's third-quarter earnings call on Wednesday, Musk said that a lot of people rely on loans and monthly payments to purchase a car. With rising interest rates, the monthly payments customers pay for the cars haven't really changed, Musk said.

"When you look at the cost or the price reductions we’ve made in, say, the Model Y and you compare that to how much people’s monthly payment has risen due to interest rates, the price of the Model Y is almost unchanged," Musk had said.

Tesla has been cutting prices on its vehicles across geographies since the start of 2023.

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