Tesla Inc. slashed prices across its four-vehicle lineup late Jan. 12, after missing its delivery forecast for last year.
On its Canadian website, Tesla now lists its Model 3 with all-wheel-drive — its entry-level vehicle in Canada — at C$54,990, before shipping.
That's a reduction of C$5,000, or about 11 per-cent, over the crossover's previous price, and it now ensures the vehicle qualifies for the federal Incentives for Zero-Emission Vehicles (iZEV) program. After Tesla hiked its Model 3 price in November 2021, the vehicle was disqualified from the program, which offers a C$5,000 federal rebate.
The price reduction now puts the Model 3 below the C$55,000 price cap for the incentive. Previously, the crossover started at C$59,990 before shipping and fees. In Canada, Tesla charges $1,990 in delivery and fees, which don’t affect qualifying for the federal rebate.
Tesla also reduced prices significantly for the Model S midsize sedan, Model Y and Model X midsize crossovers after coming up short of its own expectations for global 2022 deliveries.
In Canada, the Model Y price fell to C$69,990, down nearly 18 per cent from C$85,000. The price for a Model S fell 11 per cent to $122,990 while the starting price for a Model X dropped to C$142,990, down 10 per cent.
Tesla delivered more than 1.31 million cars for the year, falling short of its 50-per-cent growth forecast. Vehicle deliveries rose 40 per cent last year while production grew 47 per cent to 1.37 million, Tesla said earlier this month. CEO Elon Musk had predicted 50-per-cent growth for 2022.
In the United States, Tesla cut its price of the Model Y Long Range with all-wheel-drive by 20 per cent, knocking off US$13,000 to price it at US$52,990, before shipping.
Reuters reported Friday that Tesla had also cut Model 3 and Model Y prices Germany by one per cent to 17 per cent depending on the configuration.
Musk had warned last month that higher U.S. interest rates and a slowing economy could push the automaker to reduce prices to maintain its growth momentum. Musk also said lower prices would also reduce profit.