Customers in British Columbia can choose from the rear-wheel drive Model Y and the long-range, all-wheel drive version of the Model 3. Notably, both models are eligible for federal incentives of C$5,000 ($3,700) in Canada. Unlike the United States, Canada does not tie electric vehicle subsidies to the manufacturing location.
With the China-made Model Y priced at C$61,990 in Canada, Tesla and other electric car manufacturers have a competitive advantage in the Chinese market due to export benefits. Interestingly, the listed price in Canada is approximately 22% higher than the cost of the same vehicle in China before incentives.
This strategic move allows Tesla to maintain inventory for the United States, where vehicles produced in California and Texas can benefit from potential tax incentives of up to $7,500 under the Biden administration's subsidy program. Furthermore, it expands the market reach for Tesla's Shanghai factory, which contributed over 50% of the company's total production last year.
The vehicles manufactured in Shanghai can be identified by a unique code in their Vehicle Identification Numbers (VINs), starting with the letters "LRW." While the exact number of China-made Teslas available for purchase in Canada remains unknown, the company aims to export nearly 9,000 Model Y vehicles to North America this quarter.
Source: Reuters