No Tesla’s were able to qualify for the new Canadian EV incentive of $5,000 that recently passed. However through some trickery and a slashed range for the Standard Range Model 3, Tesla was able to qualify.
Let’s revisit the rules that disqualified any Tesla model in the first place. According to Travel Canada, a vehicle would have to meet the following stipulation:
- a vehicle with six seats or fewer, where the base model (trim) Manufacturer’s Suggested Retail Price (MSRP) is less than $45,000;
- higher priced versions (trims) of these vehicles, up to a maximum Manufacturer’s Suggested Retail Price (MSRP) of $55,000, will also be eligible for purchase incentives
At the time, the lowest priced Tesla was the Standard Range Model 3 which you had to purchase “off-menu” at $47,000 (CAD).
However, Tesla has made a change in its lineup. The Standard Range Model 3 in Canada will now have a base price of $44,999 and a range slashed down to 150km (93 miles).
The Company wrote the following on their Canadian incentives page:
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.
So why does this extend to the Standard Range Plus Model 3 which starts at $53,700 (before delivery and document fees)? Well since the “Standard Range Plus” is a trim level of the “Standard Range” Model 3, it qualifies for the EV incentive since its less than $55,000.
It definitely was a sneaky way to meet the regulations especially considering that while the Standard Range Model 3 is available for purchase, having it as a secret “off-menu” item that 90% of people won’t know about, might as well mean its unavailable. Regardless, it shows how much more Tesla wants to push the Standard Range Plus version of the Model 3, completely crippling it in range without any mention of offering the customer an option to buy back those software-locked miles.
Nonetheless, despite the sneakiness, the Canadian government has accepted this arrangement. You can find the Model 3 listed on its list of eligible cars.
What do you guys think of the move? Was this the best way for Tesla to hit the Canadian EV incentive threshold? Let us know down in the comments.