Tesla Hikes Model S Plaid Price By $10,000 As It Cancels The Premium Version

Tesla Inc TSLA on Wednesday raised the price of the Model S Plaid variant after officially canceling plans earlier this week to make the most expensive variant of its flagship Model S sedan.

What Happened: The Palo Alto, California-based EV maker has quietly updated its U.S. website to reflect the increase in price for the Model S Plaid version by $10,000 to $129,990 before subsidies. The price of the Model S base variant remains unchanged at $79,990.

In late May, Musk said that the delivery of the Model S Plaid is being delayed by one week to June 10, stating that the vehicle needs "one more week of tweak."

See Also: Tesla Officially Cancels The Model S Plaid+

Why It Matters: The price hike comes ahead of the company’s first Model S Plaid deliveries, scheduled to roll out later today from the automaker’s Fremont Factory.

The Model S Plaid is a performance variant of Tesla's Model S five-door EV sedan launched in 2012. Tesla claims the Plaid version of Model S will have a 390-mile range battery, its best with 1,020 horsepower and acceleration from zero to 60 miles per hour in two seconds.

Musk had earlier this year pointed out a delay in the deliveries for the refreshed Model S and X vehicle variants, citing multiple factors; one being continued safety testing on the battery packs in the vehicles and the ongoing supply chain issues due to the global chip shortage

Price Action: Tesla shares closed 0.80% lower at $598.78 on Wednesday. 

Read Next: Elon Musk Says Only Sells Tesla Stock When There's 'No Choice'

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