Tesla has officially announced the introduction of the Tesla Model Y Long Range, imported from China, to the Canadian market. This move by the electric vehicle (EV) giant marks a significant development in its manufacturing and distribution strategy. The Chinese-manufactured model will be priced the same as the previously sold US-built Model Y crossovers in Canada, but it comes with a slight drawback: a reduced driving range compared to its American counterpart.
Initially, when news broke about Tesla shipping EVs from China to North America, there was speculation regarding CEO Elon Musk’s past statements and whether he had been deceptive or the circumstances had changed. However, upon revisiting prior discussions on the possibility of imports, it became evident that Musk had specifically stated they would not be coming from China to the US. Therefore, Canada emerged as the logical destination for these vehicles.
This strategic decision by Tesla has the potential to benefit the Canadian market significantly. By freeing up more US-made Model Y SUVs for domestic sales, Tesla allows more customers to take advantage of the new federal EV tax credit in the United States. This can be achieved by reducing exports to Canada.
Importing vehicles from China can compensate for the inventory loss in Canada without adversely affecting tax incentives in the country, as it would in the United States. The move appears to be working well, as Tesla has already shipped over 10,000 EVs from China to Canada in the second quarter of 2023.
Alongside the introduction of the China-made Model Y, Tesla is revamping its product lineup in Canada and other markets. The company now offers a more affordable option, the Model Y RWD, starting at $59,990 CAD. According to Electrek, Canadian customers purchasing this version of the Model Y can benefit from up to $12,000 in incentives. The new variant also originates from Tesla’s Giga Shanghai factory in China.
Regarding the China-made Model Y Long Range, Tesla specifies an estimated driving range of 497 kilometers (km). In comparison, the US-manufactured version boasted a range of 531 km. Despite the difference in range, both models share the same starting price of $69,990 CAD.
