Tesla has recently announced a price increase for their Model 3 and Model Y vehicles in Canada, making them no longer eligible for the federal government’s $5,000 iZEV rebate. This price hike comes as Tesla continues to make updates and improvements to their electric vehicle lineup.
For the Model 3, the price increases are as follows:
– Long Range RWD: $55,990 (up $1000)
– Long Range AWD: $60,990 (up $1000)
– Performance AWD: $70,990 (up $1000)
Similarly, for the Model Y, the price increases are as follows:
– Long Range RWD: $60,990 (up $1000)
– Long Range AWD: $64,990 (up $1000)
– Performance AWD: $69,990 (up $1000)
With these price increases, the vehicles now exceed the starting price cap set by the federal rebate program, disqualifying them from receiving the $5,000 incentive. This news comes as the federal government also announced that the iZEV funds are diminishing and may run out before March 31, 2025.
In addition to the federal rebate changes, Quebec has also announced a suspension of EV rebates from February to April 2025 due to the program running out of funds. This suspension will impact not only vehicle purchases but also rebates for home EV charger installations.
The price increases coincide with the launch of the new Model Y refresh in the Asia-Pacific region. Due to tariffs imposed on EVs made in China, Canadian customers may likely receive the new Model Y from Tesla’s Fremont factory instead of the Gigafactory in Shanghai. This change could potentially affect the availability and delivery timelines for Canadian customers.
Overall, these price increases and rebate changes highlight the evolving landscape of electric vehicle incentives and regulations in Canada. Customers will now need to factor in the higher costs of Tesla vehicles without the benefit of federal rebates, as the government programs face funding challenges and uncertainties in the coming months.