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Canadian Pricing and Delivery

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From 2012/07/25 Q2 2012 QA Conf Call notes


Sounds like they are going to build a couple of "traunches" of US general production before any Canadian cars, including Signature. We've been pushed back, I think. Suggests maybe our emails are a couple of weeks out.

Because they were talking about locking in, theoretically Canadian Sigs could still have a shorter "lock-in to delivery" timeframe; unlikely but possible. It sounds like the ramp up is quite exponential... If there really is only a couple of weeks between Signature and production, if I was reasonable I should drop back to P. We haven't heard what perks Canadian Sigs are getting; for example our telecom companies are usually jerks to work with, who knows if we even get free data for a year. But seriously, if there are USA P's produced, I want to be able to get whatever color I want.
 
Because they were talking about locking in, theoretically Canadian Sigs could still have a shorter "lock-in to delivery" timeframe; unlikely but possible. It sounds like the ramp up is quite exponential...

That would make me keep my sig reservation. After all the only reason I upgraded was to get the car sooner.... From the conf call it sounds like they might be producing the CDN P's right after the CDN sigs...

If there really is only a couple of weeks between Signature and production, if I was reasonable I should drop back to P. We haven't heard what perks Canadian Sigs are getting; for example our telecom companies are usually jerks to work with, who knows if we even get free data for a year.
If I was reasonable I would drop back to general production as well.

But seriously, if there are USA P's produced, I want to be able to get whatever color I want.

Ditto! Although in the end I'll probably go with white, so no big deal...
 
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Hi all,

In a correspondence with Hans recently he indicated they are aiming for October start of delivery but I told him I only wanted a ballpark estimate and I wouldn't hold him to it. :)

At the upcoming test drive in Toronto I expect they are going to get asked "when and how much" by everyone. I hope they have some answers. I am really nervous about the pricing based on the Roadster experience. I really want to keep my Sig 29 place but if the pricing is so out of whack with the US price I will bail on principle. The Sig already has a built in premium over the non-sig car and another premium over the US pricing will be too hard to swallow. In reality all of us Sig buyers are already braking the rule of "don't buy a new model in its first year" and I expect some issues - more than willing to deal with that but being soaked on price for the privileged will hurt.

I don't want to sound too negative - I have been advocating for this company for years to anyone who will listen. I am excited about the test drive in a week and (hopefully) get my car this fall but my enthusiasm is continuously tempered by my worries about what they will do with the Canadian pricing. We shall see.
 
I'm assuming all you guys are verteran car owners. I've got some questions about car loans.
I've never had a car before and I'm trying to save up for a Tesla by 2014, but I don't think that will be enough time. So I'm thinking I might have to get a car loan to pay for the last $20k, but I'm not sure how well that would go.

Basically my question is, if you guys had the option of buying a decent ICE car (2014 VW Passat TDI) and being debt free, or purchasing an all electric Tesla and putting yourself $20k in the hole, what would you choose? I might be thinking out of whack but I really think that it would just be stupid to buy an ICE car now.
 
That's a very interesting question, Mogwai. Can you refine it a little bit? More specifically, which Model S configuration are you considering (key points of interest are battery size, perf/non-perf, and total $)?
 
That's a very interesting question, Mogwai. Can you refine it a little bit? More specifically, which Model S configuration are you considering (key points of interest are battery size, perf/non-perf, and total $)?

Well I'd really like Perf but I think that's going to be way to far out of my price range and I'd be more than happy to have the 85kw base model (with pano roof, tech pack, air suspension, parcel shelf and twin chargers + high power charger).

That said, I'd settle for the 60kw with the same configurations. 40kw is out of the question.

Mind you, on top of the price of the car I'm also going to need an additional $5000 for registration and insurance. I could be way off with that number but since I've not had a license for very long my insurance is going to be high, and I'm fine with that. I will want to get full coverage though so the $5000 is a high estimate.
 
Hopefully that's enough for our financially savor forum members to offer some useful guidance. (I'm not one of them. :( )

Well assuming there is a 25% increase in price (again, a high estimate which I almost expect to be lower) the price of the 85kw would come to $111k, and the price of the 60kw would come to$101k. So I pretty much think I'll be able to get to about $80k in 2 years. I could get enough to pay in full but I'm not sure how everything will play out.
 
hmmm, I would never dream of buying a Tesla as my first car. My first car was 2500$, it was a 12 year old nissan maxima...

I vote for spending within your means... Especially on something like a car that depreciates so quickly.

I'm assuming all you guys are verteran car owners. I've got some questions about car loans.
I've never had a car before and I'm trying to save up for a Tesla by 2014, but I don't think that will be enough time. So I'm thinking I might have to get a car loan to pay for the last $20k, but I'm not sure how well that would go.

Basically my question is, if you guys had the option of buying a decent ICE car (2014 VW Passat TDI) and being debt free, or purchasing an all electric Tesla and putting yourself $20k in the hole, what would you choose? I might be thinking out of whack but I really think that it would just be stupid to buy an ICE car now.
 
Ranging back on topic:

I distinctly heard George B on the Q2 investor conference call cite an almost timetable for Canadian lock-ins. I found the quote on the Seeking Alpha transcript of the call:

We have invited the signature reservation holders in the U.S. only to configure. And then we went out about 10 days ago, give or take, to our first group of general production people, sending out the email saying it’s time to build your Model S. And then this week we’ll go out to the next tranche of general production U.S. And then we’ll proceed from there to Canada signature, then Canada general production. So just to be clear here, we haven’t gone out to 12,000 people and said, configure your car. We’re doing it in sequential order based upon when they made their reservation. And as of today, we’ll be about 1,000 fully configured cars that people have finalized their options and everything on.

[Bold emphasis mine]

That seems to imply that Canadian Signature reservation holders could be one to two weeks away from getting invited to lock-in, and that Canadian P folks would be a week or two after that! Thanks George B for some encouragement for your northern neighbours, eh!
 
I understand peoples reasoning with spending within my means. However I will be going to school for Sustainable Energy Engineering, so an all electric car really goes in line with my chosen career path.

However I will take the whole "spend within your means" concept into serious consideration. I suppose it would put me quite far ahead of the game if I could come out of school with $60k, $70k or even $80k, instead of being that much money in the hole.
 
Basically my question is, if you guys had the option of buying a decent ICE car (2014 VW Passat TDI)

You couldn't pay me enough to have another TDI. Horrible car. 22 cents (U.S.) per mile for dealer maintenance over the 95,000 miles I kept it. Engine blew at 80,000 miles (covered under warranty so not included in the 22 cents/mile). Every fill was a smelly mess, and you had to park it outside because if you started it in the garage you couldn't go in the garage for some time--never again.
 
Little bit OT but then again until we get actual pricing we don't have a lot to talk about ...

Basically my question is, if you guys had the option of buying a decent ICE car (2014 VW Passat TDI) and being debt free, or purchasing an all electric Tesla and putting yourself $20k in the hole, what would you choose? I might be thinking out of whack but I really think that it would just be stupid to buy an ICE car now.

First off there are lots of people here who are going to be more than $20k in the hole after they get their S/X. While you are young if you can in fact save that much to put down you would be ahead of a LOT of people here. That said, is that money better spent on a house or invested? Almost certainly. But that's your choice. As for the ICE car I'd agree with avoiding the TDI as someone else mentioned. You could get an Fusion Energi or some hybrid/plug-in/ice which while not all-electric is at least a step in the right direction and still have enough cash left over to have a head-start. I don't know what the market is like in that job field you've chosen but it's relatively rough out there right now in general -- a decent nest egg while you're looking for work wouldn't be a terrible idea. It could be a LOT longer than you think to find work. Then, if you're lucky enough to hit a good job with a good salary maybe then you could pull the trigger on the Tesla.
 
Little bit OT but then again until we get actual pricing we don't have a lot to talk about ...



First off there are lots of people here who are going to be more than $20k in the hole after they get their S/X. While you are young if you can in fact save that much to put down you would be ahead of a LOT of people here. That said, is that money better spent on a house or invested? Almost certainly. But that's your choice. As for the ICE car I'd agree with avoiding the TDI as someone else mentioned. You could get an Fusion Energi or some hybrid/plug-in/ice which while not all-electric is at least a step in the right direction and still have enough cash left over to have a head-start. I don't know what the market is like in that job field you've chosen but it's relatively rough out there right now in general -- a decent nest egg while you're looking for work wouldn't be a terrible idea. It could be a LOT longer than you think to find work. Then, if you're lucky enough to hit a good job with a good salary maybe then you could pull the trigger on the Tesla.

Another option I was considering was to buy a house and rent it. Then I could mortgage it, buy a Tesla and pay for the mortgage with the profits I make from renting it. I'll be going to school for Sustainable Energy Engineering in 2014, so I wouldn't actually be able to enter the field until 2016ish.

I might end up making more money than I think I will I think I'm just pointlessly fretting over my dreams. Another member raised a good point to me as well, that by 2014 we will likely have a lot more info about the Gen III, and that might just be a better option for me. That said, I think the Model S is going to be a hell of a car and I doubt many people will be disappointed in their purchase.