Image credit: The Byteline

Tesla has raised the prices of its Model X lineup in the U.S. by $5,000, according to an update on its website.

The Model X all-wheel drive now starts at $84,990, up from $79,990, while the high-performance Plaid variant climbs to $99,990, up from $94,990.

The move follows a similar price increase in December, when Tesla bumped up the cost of its Model S by $5,000, and a more recent price hike across all models in Canada, effective February 1.

Despite the price adjustment, Tesla has not provided a reason for the increase. The company has been working to reduce production costs, and in January reported that the cost of materials and labor per vehicle had dropped to its lowest level in the fourth quarter, thanks to falling raw material prices.

READ MORE: Elon Musk declares himself ‘White House Tech Support’ for Trump

Musk’s Influence Expands Beyond Tesla

Tesla’s latest price hike comes as Elon Musk’s power extends beyond the auto industry and into the U.S. government, where he has become a key figure in Donald Trump’s administration.

As head of the Department of Government Efficiency (DOGE)—a role Musk took on after backing Trump’s 2024 campaign—he has been aggressively pushing for deregulation and deep budget cuts across federal agencies. His influence over technology, defense, and now even economic policy has sparked both excitement and alarm in Washington.

Though DOGE officially focuses on cutting red tape, Musk’s close relationship with Trump has led to speculation that Tesla may benefit from looser regulatory oversight, particularly in areas such as EV subsidies, factory expansion, and autonomous driving regulations.

What’s Next for Tesla?

With Musk’s political clout rising and Tesla’s pricing strategy shifting, analysts are watching closely to see whether these price increases signal a broader shift in the company’s approach—or whether they’re simply a reaction to market conditions.

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