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Tesla cuts the price of the Model Y by $4,000 in Canada

The price cut makes the EV eligible for a $5,000 federal incentive

Tesla has cut the price of its Model Y Rear-Wheel Drive (RWD) and Long Range models in Canada.

The $4,000 price cut drops the Model Y RWD down to $53,990 from $57,990. This price cut makes the Model Y RWD the same price as the Model 3 RWD for the first time.

The Model Y Long Range model has also been given a $4,000 price cut, dropping to $63,990 from $67,990.

Both these price cuts make the vehicles eligible for the federal government’s iZEV (zero-emission vehicle) $5,000 incentive. The federal incentive is available for purchased cars with an MSRP under $55,000 (Model Y RWD and Model 3 RWD).

Station Wagons, SUVs and Trucks are also eligible with an MSRP under $60,000 and higher-priced trims of these vehicles (such as the Model Y Long Range) up to a maximum of $70,000. Tesla’s Model Y Performance model remains the same price at $74,290, making it not eligible for a federal incentive. The federal government has a full list of zero emissions vehicles (ZEVs) eligible for the incentive on its website.

The $5,000 federal incentive would make the Model Y RWD go from $53,990 to $48,990. The Model Y Long Range would go from $63,990 to $58,990.

Some provinces also offer an incentive on top of the federal government’s incentive. British Columbia has up to a $4,000 incentive based on an income-tested basis. Québec offers up to a $7000 incentive for fully electric vehicles (EVs). Ontario does not offer any financial incentives for EVs. Tesla lists all available provincial incentives on its website. 

The Model Y was one of the best-selling EVs in Canada last year. Tesla also reduced prices last year, which led to a record number of car deliveries. Tesla recently refreshed the Model 3, and there are reports a new Tesla EV could enter production in 2025.

Update: 07/02/2024 at 10:17am ET — Tesla has reduced the price of the Model Y Performance to $69,990 from $74,290. It is now eligible for the federal incentive also.

Image credit: Tesla

Via: iPhone in Canada

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