• Tesla has reduced the price of its Model 3 in Canada by $5,000.
• By increasing to $54,990, the model becomes eligible for government rebates.
• The company’s price reductions, which also affect other models, aim to make products more competitive in the face of increasing competition.
Tesla has made price cuts across its lineup in several places around the world, including Canada. What will hit consumers directly is the $5,000 reduction in the all-wheel-drive Model 3, the brand’s entry-level vehicle in the country.
By increasing to $54,990, it automatically becomes eligible for government rebates under the federal program for “zero emission” vehicles (iZEV), as well as the measures still in effect in Quebec and British Columbia.
Depending on where you live in the country, that can mean something like double or triple the advertised discount.
This price reduction represents an 11% reduction from what was previously required. Previously, the model was priced from $59,990 before freight and delivery charges, set at $1,990 domestically. Note that these do not affect program eligibility.
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Tesla also slashed prices for the Model S midsize sedan and the Model Y and Model X SUVs after missing its own 2022 global delivery targets.
Some Canadian consumers will be able to take advantage of this new reality. However, as with every price reduction announcement for a vehicle, it’s insulting to those who picked up the model last month. We can also experience this reality constantly in the retail trade, but the sums are greater when we are talking about a vehicle.