Tesla is making a last-ditch effort to boost sales of its flagship Model S before the year ends, but its strategy is raising eyebrows. After discontinuing its free Supercharging for life offer in 2018, the electric vehicle (EV) manufacturer is reinstating the perk for select Model S cars, but with a catch – a $5,000 price hike.

The Model S all-wheel drive version now starts at $79,990, while the high-performance Plaid variant begins at $94,990. This significant price increase may not be enough to offset the declining demand for the luxury EV, which has been steadily decreasing over the years. According to estimates by Electrek, Tesla sold around 12,000 to 13,000 Model S EVs in Q2, a 31-37% year-over-year decline. The third quarter saw an all-time low, with roughly 10,000 Model S and Model X units sold.

The revived free Supercharging offer comes with some caveats. The perk is only eligible while the owner retains the vehicle, meaning it cannot be transferred. Additionally, taxi, ride-hail, and delivery drivers are excluded from taking advantage of the free charges. This move may be seen as an attempt to appeal to individual buyers, rather than commercial operators.

Industry analysts are watching Tesla's sales strategy closely, as the company faces increasing competition in the EV market. With the Model S being one of Tesla's most expensive offerings, the price increase may not be enough to drive sales. The company's decision to revive the free Supercharging offer may be a sign of desperation, as it tries to move inventory before the year ends.

The implications of Tesla's move extend beyond the company itself. The EV market is becoming increasingly crowded, with established automakers and new entrants alike vying for market share. As the industry continues to evolve, companies will need to adapt their pricing and sales strategies to stay competitive. Tesla's decision to increase the price of the Model S while offering free Supercharging may be a sign of things to come, as manufacturers experiment with different approaches to drive sales and customer loyalty.

As the year draws to a close, it remains to be seen whether Tesla's strategy will pay off. Will the revived free Supercharging offer and increased price point be enough to boost sales of the Model S, or will the company need to rethink its approach to stay ahead in the competitive EV market?