Tesla Model 3 Loses Federal, Numerous Provincial Rebates After Price Hikes
Tesla is seeing huge demand for its vehicles and on Tuesday, increased the price of its Model 3 line up and Model Y in Canada, reports Tesla North.
The entry Model 3 (rear-wheel drive, formerly Standard Range) saw a price jump to $59,990 CAD including freight and other fees, a jump of $3,610. It was previously priced at $56,380, a mere $10 below the threshold for Canada’s iZEV rebate program of $5,000 CAD.
But this latest price hike sends the entry Model 3 over the $55,000 CAD iZEV rebate limit, so that means it no longer will qualify.
The federal government updated its website at 5pm on Tuesday, indicating the change.
“As of November 23, 2021 at 17:00 Pacific Standard Time, the following makes and models of vehicles are no longer eligible for iZEV Program incentives,” detailed a note on the iZEV program webpage, listing the following Model 3 variants:
- 2022 Tesla Model 3 Standard Range and RWD
- 2021 Tesla Model 3 Standard Range and Standard Range Plus
“All eligible consumers who ordered one of these vehicles prior to this date will still receive the iZEV Program incentive (subject to funding availability),” says the federal government.
In British Columbia, the province’s $3,000 rebate for the Tesla Model 3 is no longer listed on the updated CleanBC Go Electric Eligible Vehicle List, which was updated on November 23, 2021.
According to Tesla, the only provinces and territories that offer rebates as of November 24, 2021, include:
- Quebec: Up to $8,000 for vehicles under $60,000 MSRP
- Newfoundland: Up to $2,500
Rebates dropped from the Model 3:
- B.C.: Up to $3,000 for cars under $55,000 MSRP
- New Brunswick: Up to $5,000 for cars under $55,000 MSRP
- Nova Scotia: Up to $3,000 for cars under $55,000 MSRP
- Yukon: Up to $5,000 for cars under $55,000 MSRP
So overnight, the Model 3 was dropped from both the federal rebate, and provincial rebates in B.C., New Brunswick, Nova Scotia and the Yukon. Including the price increases on Model 3 vehicles, that’s over a $13,000 price jump overnight.
Check out the price increases for the Model 3 and Model Y below:
Model 3 Prices in Canada
- Model 3 – $59,990 (was $56,380; + $3,610)
- Model 3 Long Range – $66,990 (was $64,990; +$2,000)
- Model 3 Performance – $76,990 (was $74,990; +$2,000)
Model Y Prices in Canada
- Model Y Long Range – $76,990 (was $74,990; +$2,000)
- Model Y Performance – $85,290 (was $83,290; +$2,000)
The price increase wasn’t the only change. Tesla now includes Midnight Silver Metallic as a ‘free’ paint option (previously was $1,300 CAD), joining Pearl White Multi-Coat. Also, the Black colour saw a price jump to $2,000 CAD.
Tesla is seeing unprecedented demand for its vehicles, amid a global semiconductor shortage and also parts supply chain pressures.
An entry Model 3 with 18-inch Aero Wheels has an estimated delivery date of October 2022, but upgrading to 19-inch Sport Wheels (+$2,000) shortens that time to June 2022.