Tesla has announced a significant reduction in prices for its Model Y lineup in Canada, with reductions reaching up to $4,000 CAD, reports Tesla North.
The price cut lowers the entry point for the Model Y Rear-Wheel Drive (RWD) to $53,990 CAD from the previous $57,990 CAD. The Long Range model sees a drop to $63,990 CAD from $67,990 CAD, while the Performance model’s price remains the same at $74,290 CAD.
This pricing strategy becomes particularly appealing with the inclusion of available rebates. In Quebec, up to $7,000 CAD in rebates are accessible, alongside a federal iZEV rebate of $5,000 CAD, potentially lowering the purchase price of the Model Y RWD to as little as $41,990 CAD after rebates, after $12,000 off.
Furthermore, the price adjustment has aligned the cost of the Model Y RWD with the Model 3 RWD for the first time, setting both vehicles at $53,990 CAD. This adjustment significantly increases Model Y’s value proposition over the Model 3, considering its larger size and more comfortable ride for Canadian buyers.
The previous adjustment to the Model Y’s pricing in Canada occurred in October of last year, marking a $2,000 CAD decrease across the RWD, Long Range, and Performance models. This latest reduction brings the total price drop for the Model Y RWD and Long Range models to $6,000 CAD in less than four months. That’s going to hit the used market hard. Ouch.
In a recent Q4 earnings report, Tesla highlighted the Model Y as the world’s best-selling car in 2023, underscoring the vehicle’s global appeal and market dominance, pushing out 1.2 million units.
The massive rebate in Quebec, coupled with the federal rebate will definitely increase Model Y sales in the province. Tesla already led all automakers in claiming federal iZEV rebates for 2023.
