An electric-vehicle “price war” is expanding the roster of vehicles eligible for federal consumer rebates, but it is unlikely to draw in more automakers.
“This is a price war,” said Robert Karwel, senior manager, Automotive Practice Canada at J.D. Power. The current inventory shortage, however, will limit the response from other brands, he said.
So far, only Ford has responded to Tesla’s decision Jan. 12 to slash prices across its four-vehicle lineup, after missing its delivery forecast for 2022.
On its Canadian website, Tesla now lists the entry-level Model 3 rear-wheel-drive sedan at $54,990, plus $1,880 for shipping and fees. That’s a reduction of $5,000, or about 11 per cent, over the previous $59,990 plus shipping.
Under the federal Incentives for Zero-Emission Vehicles (iZEV) program, zero-emission passenger cars with base models below $55,000, and variants priced up to $65,000, qualify for a rebate of up to $5,000. Larger vehicles — SUVs, minivans and pickups — with base prices below $60,000 and variants priced up to $70,000 also qualify.
When Tesla hiked the Model 3’s price in November 2021, it was disqualified from the program, which at the time had a passenger-car price cap of $45,000.
With significant provincial rebates, such as in Quebec, buyers of the Model 3 can now save as much as $12,000.
The base price of the Model Y crossover was cut to $69,990, down nearly 18 per cent from $85,000, and the Model S sedan fell 11 per cent to $122,990. The starting price for the Model X crossover dropped by 10 per cent to $142,990.
Ford responded Jan. 30 with price cuts to the Mach-E crossover. The largest dollar amount is $8,500 off the Premium eAWD Standard Range and the Premium eAWD Extended Range, now $69,340 and $82,340, respectively, including $2,090 shipping. Premium eAWD Standard Range is down $7,000 to $80,090, including shipping.
MORE MACH-E ELIGIBILITY
