Tesla Model 3 in Canada will now cost $2000 dollar lesser as compared to its corresponding versions in the US. Now, before the Canadian Tesla aspirants get really excited, there is a major catch here. The $2000 discounted Tesla Model comes with software locked range cap of 150 miles which is nearly half of the maximum range of a normal Model 3.
The reason as to why Tesla stepped in with the cost and range reduction is quite obvious – to avail the incentive benefit of $5000 for its customers provided by the Government of Canada.
iZev – The $5000 Purchase Incentive Scheme from the Canadian Government
According to this scheme, people purchasing electric vehicles with a manufacturer price tag of less than $45,000 for vehicles with six seats or lower, and $55,000 for vehicles with seven seats or lower will receive a purchase incentive of $5000. This particular budget scheme is said to have kept aside $300 Million dollars for providing incentives for the next three years. This is clearly a step from the Canadian Government to increase the use of clean energy in the Automobile Industry.
Initially, the $45,000 price cap for availing the scheme was not favorable for Tesla since the base model of the Model 3 then stood at $47,000 CAD. Now, Tesla has reduced the cost associated with Model 3 to fit the same into this Incentive Scheme.
As a result of this, the New Model 3 Standard Range will be made available at $44,999. This cost, however, excludes the delivery fees and any other EV savings. The Model 3 Standard Range Plus at $53,700 is also present in the list of vehicles qualified for the iZEV Program. The Model 3 Standard Range has to be ordered via Call or Tesla Stores, whereas the Model 3 Standard Range Plus option is available for online order.
Though the range associated with the Model 3 may have been nearly halved, that may not be fully permanent. Since most of Tesla’s updates and features can be accessed over the air, we could expect that Tesla would indeed provide the complete range of 300 miles as an add-on paid feature in the future.
Also, this move from Tesla creates heavy competition for other electric car companies in the Canadian Market. It is a known fact that Tesla is pretty much the leader in the EV Segment and outweighs most of its competitors. Even with these slashed features, Tesla is a better choice compared to its competitors. Chevrolet Bolt, Chrysler Pacifica Hybrid, and many other electric cars will now have to compete with Tesla’s cars in order to benefit from iZEV Program.
The approach taken by the Canadian Government to increase the use of Electric Vehicles is indeed commendable. Sustainable Mobility will have a huge role in shaping the future and baby steps like these can ensure that at least some portion of the population is already moving towards a more cleaner energy approach.
From Tesla’s standpoint, the decision to put their cars on the radar of this scheme could yield positive results for the company in the long run. Considering the fact that Tesla cars are one of the best choices in the EV Segment, the price drop and financial support from the iZEV Program would make it a lot easier for people to afford a Tesla.
For Tesla, this would mean a huge boost for the sales of the Model 3 in Canada and thereby an increased consumer base, possibly multiple folds as compared to what they already have.
Though they offer the reduced range versions now, with Tesla’s peculiar over-the-air update feature, consumers can also find comfort in the fact that the future may see Tesla offering the 300-mile range feature as a paid add-on.
A similar move for the Model S or the Model X is not known as of now. The possibilities for such an action are relatively lower since these models go well above the price range for the iZEV Scheme.