Tesla has adjusted its pricing approach, resulting in the Model Y’s base price in Canada aligning with that of the Model 3. Despite the initial allure of the new Model 3 Highland facelift in the US, the Model Y gains traction, especially with federal subsidies narrowing the price gap.
The Model 3 Highland, priced from $38,990 in the US, faces exclusion from government tax credits due to its Chinese phosphate batteries. In contrast, the Model Y, priced at $36,490 for the Rear-Wheel Drive (RWD) variant after the tax credit, enjoys increased appeal with subsidies applied directly at the point of sale.
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Following Tesla’s recent Model Y price reductions in China and Europe, a significant drop of CA$4,000 in Canada has been implemented. This reduction not only stands as a notable adjustment but also qualifies for an additional CA$5,000 federal rebate.
Residents of Quebec, in particular, benefit further, as the latest price cut places the Model Y below the eligibility cutoff for the Roulez vert program. Consequently, an additional CA$7,000 in rebates becomes accessible, resulting in a substantial total incentive of CA$12,000. This brings the base Model Y price down to approximately US$31,300, a competitive figure even when compared to the US pricing with tax credits.
Interestingly, the official retail prices of both the Model Y and Model 3 in Canada are now identical, starting from CA$53,990 (US$40,230) before any federal or state tax credits and incentives are applied.
While the convergence of base prices for the Model Y and Model 3 may seem unconventional, Tesla’s upcoming release of the Model Y Juniper facelift in the summer hints at potential future price adjustments, possibly extending to the US market.
