Tesla Raises Prices Again, Steeper Hikes to Follow on Feb. 1
A number of automakers have stepped up to offset the sudden loss of the $5,000 subsidy from the Canadian government’s iZEV program. Hyundai, Volkswagen, Nissan, Ford and General Motors are all offering a similar rebate for eligible customers until January 31, 2025.
Hopefully, the auto industry will adjust by making their electric vehicles more affordable, especially with demand not as strong as anticipated and units piling up on many dealer lots. However, Tesla is doing the opposite.
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Let’s start with its best-selling Model Y. Since it no longer has to stay below the MSRP limit of $60,000 in order to qualify for the federal incentive, the base RWD Long Range model has just been raised to $60,990. An identical $1,000 hike also applies to the AWD Longe Range and Performance models, which now cost $64,990 and $69,990, respectively.
To be clear, we’re talking about the same vehicle as before, not the refreshed Model Y that recently launched overseas and will arrive in Canada shortly.
Tesla has increased prices on all Model 3 sedans by $1,000, too. The entry-level RWD Long Range model is up to $55,990, while the AWD Long Range model now retails for $60,990. As for the Model 3 Performance, the new MSRP is $70,990.
The Worst is Yet to Come
No pricing adjustments have been made to the Model S, Model X and Cybertruck since none of them were eligible to receive the $5,000 federal incentive to begin with.
Speaking of the Cybertruck, cheaper models have yet to show up in Canada, unlike the U.S. where Tesla has even started discounting units in response to waning demand. Only Foundation Series models are currently available, with prices set at $137,990 or $165,990 depending on the powertrain.
The worst is yet to come, by the way. Tesla Canada’s website warns shoppers that new price hikes will come into effect on February 1, with no explanation given. The Model 3 will increase by up to $9,000, while the Model Y, Model S and Model X will each increase by up to $4,000. Obviously, the move is expected to hurt the Model 3 the most in terms of sales, benefiting competitors such as Hyundai’s IONIQ 6 and BMW’s i4.
