Some debates have been struck up with the introduction of the new $5,000 federal Canadian EV rebate. The Canadian government seemed to deliberately sideline and exclude Tesla from the electric vehicle rebate but Tesla is fighting back.
“To encourage more Canadians to buy zero-emission vehicles, Budget 2019 proposes to provide $300 million over three years, starting in 2019–20, to Transport Canada to introduce a new federal purchase incentive of up to $5,000 for electric battery or hydrogen fuel cell vehicles with a manufacturer’s suggested retail price of less than $45,000. Program details to follow.”
Last month Canada introduced their first federal electric vehicle rebate. The Canadian government has set aside $300 million for the next three years to incentivize car buyers to shift towards electric. This lead to the creation of the $5,000 rebate dubbed the iZEV program but there’s a catch, not every electric vehicle qualifies.
“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.”
In layman’s terms, an electric vehicle is only eligible if its base model starts bellow $45,000 CAD. In Canada, a Tesla Model 3 started at $47,000 CAD. Just about every popular EV is eligible for the rebate excluding Tesla, for now. You can view the full list of eligible electric cars here.
Now Tesla has lowered the price of their base model in order to allow their customers to take advantage of this new rebate. The Standard Range Tesla Model 3 now starts at $44,999 CAD. In order to achieve this lower price, Tesla has lowered the base Model 3 range down to 150 km (93 miles).
Since the Standard Range Plus is just a trim of the Standard Range and has a base MSRP of under $55,000, that too now qualifies. Tesla most likely reduced the range in order to make the Standard Range Plus more enticing. This way they can afford the $2,000 price cut as more buyers will upgrade to the Plus.
The Standard Range Plus Tesla Model 3 starts at $53,700 CAD. The $55,000 price limit only reflects on the base MSRP. You’re free to add as many options to both the Standard Range and Standard Range Plus and you will still receive the full $5,000 rebate.
You will not see the $44,999 Tesla Model 3 on their website but it is indeed available. In order to order that electric vehicle you must go into a Tesla store or order over the phone.
Only the Standard Range Tesla Model 3 and Standard Range Plus qualify for the $5,000 iZEV rebate. All other Tesla models are left out but there are other rebates in place throughout the provinces. You can see a full list of Canadian electric vehicle rebates here.
This EV rebate can be stacked upon other provincial incentives. In Quebec, for example, you get an additional $8,000 rebate on electric vehicles priced under $75,000. That puts the new base price of a Tesla Model 3 after rebates at just $32,000 CAD ($23,750 USD).
Another part of the new budget aimed at expanding electric vehicle usage is a $130 million investment over the next five years put towards electric car charging infrastructure. The new chargers will be located in workplaces, public parking spots, commercial and multi-unit residential buildings, and remote locations.
