Tesla Increases Price of Model Y in Canada by $4,000 CAD
After Tesla increased the price of the Model Y Long Range (along with the Model 3 Standard Range Plus) in the U.S. by $2,000 USD Friday evening, a similar price hike was observed in Canada around the same time.
The base price of the Model Y Long Range has gone up by $4,000 CAD, from $70,990 CAD to $74,990 CAD (via @kkvr2823).
— KKVR (kkvr2823.eth) (@kkvr2823) October 23, 2021
The increments seem a bit disproportionate — +$2,000 USD in the U.S. vs. +$4,000 CAD north of the border. However, this may be kind of a corrective implementation. Just earlier this month, Tesla increased the price of the Model Y LR in the U.S. by $1,000 USD, but only increased Canadian pricing by $1,000 CAD. Tesla may be looking to make up the difference this time around.
That’s twice Tesla has increased the price of the Model Y Long Range in the same month. Unfortunately, the Model Y does not even qualify for any provincial or federal electric vehicle (EV) rebates in Canada due to its higher cost, which exceeds maximum sticker price thresholds for all of the programs.
In the past, customers could just get the more economical Model Y Standard Range — but that’s no longer an option. A new Model Y Long Range will now cost nearly $75,000 CAD, and is also subject to luxury vehicle tax in select provinces.
Tesla CEO Elon Musk said during the company’s 2021 shareholder meeting earlier this month that price increases will be temporary, and are a result of high demand, supply chain shortages, and the ongoing global chip crisis. Constantly climbing costs of parts and supplies also have something to do with it.
Tesla’s goal is to lower pricing to make its cars more affordable, but for now, when supply is low, the company can’t help but hike prices. Tesla’s Berlin Gigafactory, which is expected to get final regulatory approval before year’s end, will significantly boost production capacity. Once the facility comes online, Tesla should be able achieve a better demand/supply balance and cut down delivery wait times, but additional production capacity isn’t worth anything if there simply aren’t enough parts for the company to make its EVs.
At the time of writing, the estimated delivery date for the Model Y Long Range in Canada is August 2022 — 10 months away.