Tesla Model 3 deliveries eligible for federal ZEV rebate surged in February

Tesla Model 3 deliveries eligible for the Incentives for Zero-Emission Vehicles (iZEV) program surged in February, a month after the company slashed the price of the sedan, allowing it to once again qualify for the federal rebate.

The U.S.-based electric-vehicle maker shipped 1,777 eligible Model 3s in February, up from just two the month before, according to data from Transport Canada.

Tesla reduced the price of the Model 3 to $54,990, before shipping on Jan 12, repricing it just below the threshold for iZEV eligibility. It last qualified for the incentive in November 2021, though Tesla had continued rebated deliveries through 2022 due to a backlog of orders.

The 1,777 qualifying Model 3 deliveries easily outpaced other battery-electric offerings from competing automakers in February.

The Chevrolet Bolt EUV was the closest contender, recording 531 eligible deliveries during the second month of 2023. Hyundai’s Kona and Ioniq 5 placed third and fourth, notching 330 and 265 eligible deliveries, respectively.

Shipments of qualifying plug-in hybrids slowed in February, with just three models reaching triple digits.

Mitsubishi delivered 514 eligible Outlander PHEVs during the month. The Jeep Wrangler 4xe and Toyota RAV4 PHEV followed, with a respective 212 and 149 qualifying deliveries.

Total deliveries under iZEV jumped to 5,669 in February, up from 4,759 a month earlier.

Quebec, the longtime volume leader, maintained its top position with 2,315 eligible deliveries. Placing second and third, respectively, British Columbia and Ontario each saw strong gains during the month. Qualifying B.C. deliveries rose to 1,754 from 1,083 in January, while Ontario shipments climbed to 1,222 from 862 a month earlier.