Tesla has increased Model X prices and brought back an incentive that CEO Elon Musk said was unsustainable and “not coming back to any vehicles.”

Today, Tesla updated its Model X configurator in the US to raise the prices of the electric SUV by $5,000.

The new prices are $84,990 for the Long Range version and $99,990 for the Plaid version:

The price increase means the Model X ino longer qualifies for the $7,500 Federal EV tax credit as it now exceeds the $80,000 price cap for electric SUVs.

But with the price increase, Tesla is ramping up the incentives.

Tesla brings the price down by $1,000 with a referral code, it gives one option for free if you buy the Full Self-Driving package, and it is bringing pack “free Supercharing for life.”

The latter, Tesla stopped offering because CEO Elon Musk said it was unsustainable.

Back in 2020, the CEO said that it will “not come back to any [Tesla] vehicles”:

“Just us being fools, but free Supercharging forever is not coming back to any vehicles. It’s not a good incentive structure.”

However, it did bring it back last year as an “end-of-the-year incentive.”

But now, Tesla is bringing it back for Model S and Model X, and it applies to orders from the US, Canada, Puerto Rico, Europe and Middle East.

Tesla has made some changes to the program. Instead of being linked to the vehicle, meaning free Supercharging would remain if you sell it, it is now attached to your Tesla account.

The automaker also says that it doesn’t apply to vehicles used for commercial purposes:

“Customers who purchase or lease a new Model X are eligible for free Supercharging during your ownership of the vehicle. Offer is tied to your Tesla Account and cannot be transferred to another vehicle, person or order, even in the case of ownership transfer. Used vehicles, business orders and vehicles used for commercial purposes (like taxi, rideshare and delivery services) are excluded from this promotion.”

However, Tesla also said that the last time, but it is hard to enforce.

Porsche will launch new gas-powered and plug-in hybrid (PHEV) cars as its EV models fail to gain traction. The sports car maker warned that the new combustion engine models and battery development expenses would hurt profits this year, sending share prices plunging.

Porsche plans new gas-powered cars to boost profits

After announcing that it expects profit margins to be between 10% and 12% this year, Porsche said it’s taking “extensive measures” to boost short and medium-term profits.

The forecast is well below Porsche’s long-term goal of an operating return on sales of more than 20%. To boost profits, the company announced plans to add new gas-powered (combustion engine) and plug-in hybrid vehicles to its lineup.

Porsche warned the new models and additional battery investments would take a hit on profits this year, costing an extra 800 million euros ($830,000).

The shift comes after Porsche’s deliveries fell 3% last year, with China, one of its most important markets, leading the downfall. Deliveries in China plunged 28% as it failed to keep up with domestic EV makers like BYD, Xiaomi, and XPeng.

Last week, Porsche said it was in talks over ending contracts for CFO Lutz Meschke and Detlev von Platen, head of sales and marketing.

After introducing the upgraded 2025 model last year, Porsche delivered just over 20,800 Taycan models, nearly 50% fewer than in 2023.

Porsche also began deliveries of its second electric vehicle, the Macan, at the end of September. This vehicle should help provide some relief this year. The company said the Macan EV launch “literally electrified us” after delivering over 18,000 models by the end of 2024.

Following the updated guidance, Porsche’s stock suffered one of its worst days since listing in 2022. Porsche, which was once valued higher than parent company Volkswagen, has watched its market cap dwindle in half from an all-time high in May 2023.

Electrek’s Take

Porsche wants to improve profits by adding new gas-powered cars, but this will likely only set it back further. The sports car maker is already struggling to keep up with BYD and others in China, which was its second-largest sales market in 2023, behind North America.

Taycan sales fell to just 4,747 in the US last year, 37% less than Porsche sold in 2023. Although the new model year rolling out is part of the reason, even Q4 sales were over 40% lower than the year before, at just 1,353 units.

With pure EV makers like Lucid and Rivian gaining momentum and others like Volvo, Genesis, and GM’s Cadillac launching new models, Porshe could lose out in the long term.

The situation is even more severe in China, where BYD, Xiaomi, and other domestic automakers are squeezing foreign brands out of the market.

Xiaomi, which began delivering its first self-developed EV, the SU7, last April, delivered over 135,000 models in 2024. This summer, it will launch its second EV model, the YU7.

Meanwhile, recent reports suggest Porsche could delay more electric models, including the Cayenne EV, due out in 2026.

Putting short-term profits ahead of long-term brand building could set Porsche up for failure. The company has already backtracked on its goal of having 80% of global deliveries electric by 2030, so what’s next?

Will Porsche turn things around? Or will it continue losing market share as the industry shifts to EVs? Drop us a comment below and let us know your thoughts.