Tesla has lowered the price of its Model 3 sedan for its Canadian customers in order for the vehicle to be eligible for a government tax credit in the country.
Tesla lowers costs for the Model 3 sedan
Due to pricing restrictions, Tesla’s vehicles didn’t get access to Canada’s new $5,000 federal incentive for electric vehicles, but the automaker has now launched a new and cheaper Model 3 with a software-locked range of just 150 km (93 miles) in Canada to get access to the discount.
As we previously reported, Canada’s federal government launched a new $5,000 incentive at the purchase of new electric vehicles with base prices of less than $45,000 and that cost no more than $55,000 after options.
The government explains the incentive:
“To be eligible for incentives, a vehicle must have a base-model manufacturer’s suggested retail price of less than $45,000 for passenger vehicles with six or fewer seats, and less than $55,000 for vehicles with seven or more seats. For eligible vehicles with six or fewer seats, higher priced versions (trims) are eligible as long as the final manufacturer’s suggested retail price is $55,000 or less.”
It disqualified Tesla’s vehicles from being eligible to the incentive because the base Model 3, which is only available as an “off-the-menu item”, starts at $47,000.
In response, Tesla has lowered the price of the vehicle to $44,999 in Canada, but it also software-locked the vehicle to only 150 km (93 miles) of range.
The company wrote on its incentive page of its Canadian website:
Federal $5,000 rebate for individuals purchasing vehicles with a base MSRP* under $45,000 before including delivery centre fees.
The following Tesla vehicles qualify for the federal incentive provided that they are also listed on Transport Canada’s website:
- 2019 Model 3 Standard Range
- Range: 150km
- Qualifying OEM MSRP* before delivery centre fees and EV savings: $44,999
- Call or visit a Tesla store to order.
- 2019 Model 3 Standard Range Plus
- Range: 386km (EPA estimate)
- Qualifying OEM MSRP* before delivery fees and EV savings: $53,700
- Order online
*MSRP shown is based on the definition established by Transport Canada for the purposes of the iZEV program. This price excludes a $1,300 delivery and inspection fee and standard vehicle registration fees.
By making the new base Model 3 available, which again is only through calling or visiting a Tesla store to order, Tesla also made the regular Model 3 Standard Range Plus with 386 km (240 miles) of range eligible for the incentive since it is technically an option on the same car that starts below $45,000 and doesn’t go over $55,000.