Credit: Tesla
Tesla updated its website with massive price cuts for all of its vehicles in Canada Thursday night. While it wasn’t the biggest price cut, the most significant price cut goes to the rear-wheel-drive (RWD) variant of the Model 3, as it now falls under the threshold for the $5,000 iZEV incentive.
Model 3 Price changes
In late 2021, Tesla increased the price of the Model 3 RWD to $59,990, putting it above the $55,000 threshold for Canada’s $5,000 iZEV incentive. Since it was no longer below that threshold, Tesla also removed the software-limited 151-mile variant priced under $45,000, allowing the rear-wheel drive variant to also qualify for the program.
Until tonight, the base variant was still priced at $59,990, but that price has now been reduced to $54,990, putting it under the iZEV threshold. During this time, however, Transport Canada also updated the program’s requirements and increased the threshold from $45,000 to $55,000, meaning the Model 3 RWD is once again eligible for the iZEV incentive.
Tesla’s website still says none of their vehicles are eligible for the federal incentive, and Transport Canada’s list of eligible vehicles doesn’t include the Model 3 RWD, but we expect that to be updated soon.
UPDATE 10:10 PM PT: We’ve fielded quite a few questions about pricing for the rear-wheel drive Model 3. On Tesla’s website, the configurator shows $54,990, but at the bottom of the page it shows $56,990. That’s because the lower price includes various fees that add up to $2,000, as seen in the screenshot below (click to enlarge). According to Transport Canada, vehicles are still eligible for the incentive even if fees and options push the actual purchase price over the threshold. Based on all of this, the Model 3 RWD should be eligible for the incentive, but we’ll have to wait for an official announcement from Transport Canada.
The Performance variant has also seen a price cut, now with a 15% drop from $83,990 to $72,990. The Long Range variant is not yet available to order.
UPDATE 9:08 PM PT: There are some LR vehicles in existing inventory that are now priced at $67,990. When removed from Design Studio, they were priced at $76,990, so that appears to be about a 13% price reduction .
- RWD: $54,990 (-$5,000, -13%)
- LR: none
- Performance: $72,990 (-$9,010, -15%)
Model Y Price changes
The Model Y went through several consecutive price hikes over the past few years, bringing the LR variant up to $85,000. Now all of those price hikes have been wiped out, and the LR is back to its original price of $69,990, a drop of 21%.
Last year, Transport Canada expanded the iZEV regulations to include SUVs, but unfortunately that still has a price cap of $60,000, so the Model Y still doesn’t qualify.
The Performance also saw a huge price drop, down 18% from $90,000 to $75,990.
- Long range: $69,990 (-$15,010, -21%)
- Performance: $75,990 (-$14,010, -18%)
Model S Price changes
Even Tesla’s flagship vehicles saw big price cuts. Unfortunately, they’re all still priced above $100,000, which means they’re still subject to the Canadian luxury tax.
- Dual-motor all-wheel drive: $122,990 (-$12,010, -11%)
- Plaid: $149,990 (-$26,610, -19%)
Model X Price changes
- Dual-motor all-wheel drive: $142,990 (-$14,000, -10%)
- Plaid: $156,990 (-$26,610, -18%)
Editor’s Note: A previous version of this article stated that the RWD Model 3 was ineligible for the iZEV incentive, but the program requirements were recently updated to increase the minimum threshold from $45,000 to $55,000. This has been corrected. We apologize for any confusion.
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