Tesla cuts prices, Model 3 RWD now eligible for $5,000 federal iZEV rebate

Tesla has made a bold move by announcing a global price cut of up to 20 percent on some of its electric vehicles after the automotive company missed Wall Street delivery estimates for 2022 and follows warnings from CEO Elon Musk that the prospect of recession and higher interest rates could eat into company profits.

The latest price cuts apply in Canada, alongside the U.S., Europe, Middle East, and Africa.

📢 Tesla Price Drop Alert! 📢

It looks like the Model 3 RWD can qualify for the $5000 federal incentive in Canada as it is now $54990. Other model pricing has been reduced as well!

— Tesla Saskatchewan (@TeslaOwnersSK) January 13, 2023

Due to the price cuts, the Tesla Model 3 RWD now qualifies for the $5,000 CAD federal iZEV rebate, considering that the vehicle’s price has dropped below the $55,000 CAD limit. Check out the updated Canadian pricing for Tesla vehicles below:

Model 3

• RWD: $54,990 (was $61,980; $6,990 drop, -11.3 percent)
• Performance: $72,990 (was $83,990; $11,000 drop, -13.1 percent)

Model Y

• Long Range: $69,990 (was $86,990; $17,000 drop, -19.5 percent)
• Performance: $72,990 (was $83,990; $11,000 drop, -13.1 percent)

Model S

• Long Range: $122,990 (was $136,990; $14,000 drop, -10.2 percent)
• Plaid: $149,990 (was $178,590; $28,600 drop, -16 percent)

Model X

• Long Range: $142,990 (was $157,990; $15,000 drop, -9.5 percent)
• Plaid: $156,990 (was $185,590; $28,600 drop, -15.4 percent)

Further, the Model 3 and Model Y Midnight Silver Metallic colourway is no longer free. It will now cost you $1,300 CAD extra to secure a vehicle in said colour. Additionally, the cost of the 7-seat option for Model Y has risen by $1,300 and is now priced at $5,300, up from its previous price of $4,000.

It’s worth noting that this comes less than a year after Tesla raised the cost of its vehicles in Canada twice in two months. Read more about it here.

According to a statement given to Reuters by a Tesla Germany spokesperson, “At the end of a turbulent year with interruptions to the supply chain, we have achieved a partial normalization of cost inflation, which gives us the confidence to pass this relief onto our customers.”

It’s also worth noting that despite not beating Wall Street estimates of 431,117 deliveries in Q4 2022, the company did set a record with over 405,000 vehicle deliveries. It’s likely that the new price cuts have been put in place to increase demand for the company’s EVs and start 2023 strong.