Model Y Pricing in Canada Makes Absolutely No Sense – Updated

Update

 In response to some comments mentioning regulatory credits, dealership involvement, Canada being too small a market, and/or Tesla just outright not doing price corrections in Canada I present the following:

DateVehicleStarting MSRP in the USA (USD)Starting MSRP in the USA (converted to CAD with exchange rate for given date)Starting MSRP in Canada (CAD)Difference
July 10, 20202020 Tesla Model Y Long Range AWD$52,990~$72,040 (1.3595)$75,990+ $3,950 (~5%)
July 11, 2020 (big price drop when SR was “cancelled”)2020 Tesla Model Y Long Range AWD$49,990~$67,926 (1.3588)$69,990+ $2,064 (~3%)
January 7, 2021 (when the SR was un-cancelled)2021 Tesla Model Y Standard Range RWD$41,990~$53,260 (1.2684)$56,290+ $3,030 (~5%)
March 15, 20212021 Tesla Model Y Long Range AWD$49,990~$62,356 (1.2473)$69,990+ $7,634 (~12%)

Regulatory credits have been a thing during the entire time period shown, I am comparing MSRP of only Tesla vehicles (so no dealer playing around with prices), Canada is a larger market today than it was at the beginning of the time period shown, and Tesla has been supply constrained this whole time as well.

As far as I can tell, the Model Y Long Range AWD in Canada hasn’t had a price update since July 11, 2020 and, as you can see, the exchange rate has changed drastically during that time.

Original Article

A week or two ago there was some discussion amongst Canadians on the r/teslamotors subreddit about how Tesla’s pricing really didn’t add up in the great white north. The general consensus was that Tesla simply hadn’t adjusted their Canadian pricing for so long that the currency difference had made it quite a bit more expensive for us igloo-dwellers to get our hands on a Tesla compared to the US.

So today I decided to dig in to it all a little bit more and also reach out to Tesla to see what they had to say about it. Unfortunately for myself and my fellow Canadians, the outlook doesn’t seem too bright.

So let’s start off with some base starting MSRPs for the Model Y and other vehicles in the segment (I have excluded the Volkswagen ID.4 since it has no announced Canadian pricing):

VehicleStarting MSRP in the USA (USD)Starting MSRP in the USA (converted to CAD)Starting MSRP in Canada (CAD)Difference
2021 Mustang Mach-E$42,895~$53,509$50,459– $3,050 (~6%)
2021 Hyundai Kona electric$37,390~$46,639$44,999– $1,640 (~4%)
2021 Kia Niro EV$39,090~$48,759$44,955– $3,804 (~8%)
2021 Jaguar I-PACE$69,850~$87,174$91,000+ $3,826 (~4%)
2021 Audi e-tron$65,900~$82,244$85,600+ $3,356 (~4%)
2021 Tesla Model Y$49,990~$62,356$69,990+ $7,634 (~12%)

Notice anything a little off there? Yeah, the Model Y is quite far off even from the luxury brands’ offerings. So let’s get an answer straight from the horse’s mouth (metaphorically, of course) on why this is! This was the response directly from an “Inside Tesla Advisor” that I was emailing today.

The markets in Canada are indeed different from the markets in the US and Tesla has different prices for different products all around the world. This is a common theme among multinational companies.

So there you have it. Charging a 12% premium to Canadians is a “common theme”… wait a minute, no it isn’t.

But wait! None of the vehicles I listed are really direct competitors, right? I mean I picked the cheapest Mustang Mach-E, the Kona/Niro are much slower with less range, and the I-PACE/e-tron are quite a bit more expensive. So let’s look at a more apples-to-apples comparison, shall we?

VehicleStarting MSRP in the USA (USD)Starting MSRP in the USA (converted to CAD)Starting MSRP in Canada (CAD)Difference
2021 Mustang Mach-E Premium, Extended Range AWD$54,700~$68,267$69,245+ $978 (~1%)
2021 Tesla Model Y Long Range AWD$49,990~$62,356$69,990+ $7,634 (~12%)

Well… looks like it isn’t quite as “common” of a theme as Tesla seems to think. Now don’t get me wrong, the Model Y still has a lot to offer at that price point compared to the Mach-E. If you’ll entertain me, join me for a moment of daydreaming and thinking of Tesla selling the Model Y at almost $7,000 less than a comparable Mach-E. Yeah, that would be nice.

Scott

My personal technology interests lie in the realms of mobile, gaming, and almost anything Microsoft. That last part in mind, I still do try to follow the other technology giants in a more general sense. I’m not afraid to admit that the build quality of the iPhone is outstanding, that Android offers the most robust customization of any popular mobile OS, or that the PlayStation 4 has some incredibly impressive exclusive titles.

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