Tesla Model Y Performance Hits Sweet Spot For EV Incentives In Canada After Price Drop

EV giant Tesla Inc‘s TSLA high-end version of the Model Y SUV is now eligible for C$5000 (~$3,717) in zero-emission vehicle incentives in Canada after the recent price cut.

What Happened: Tesla cut prices on Model Y Performance in Canada by 5.8% or C$4,300 (~$3,196.6) on Tuesday. The vehicle is now priced at C$69,990 (~$52,030.20) as compared to the earlier starting price of C$74,290 (~$55,226.80)

For higher-priced trims of electric SUVs to be eligible for incentives in Canada, they must be priced below a price threshold of C$70,000 (~$52,037.70), which the Performance version now fits into. The vehicle will now start at C$64,990 (~$48,313.20) after incentives.

Why It Matters: Currently, all three versions of the Model Y qualify for an EV incentive in Canada, similar to the U.S. where all vehicle trims qualify for a federal EV tax credit of $7,500.

According to information listed on the federal institution Transport Canada’s website, Tesla’s Model 3 rear-wheel drive and Long-range versions are also eligible for C$5000 in Canada unlike in the U.S. where neither versions of the lower-priced sedan qualify for EV tax credit.

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