Canadian Pricing and Delivery

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Tesla Motors Announces Canadian Pricing for Model S





PALO ALTO, CA -- (Marketwire) -- 08/15/12 -- Tesla Motors (NASDAQ: TSLA) today announced pricing for Model S in Canada. Canadian customers can choose from one of three battery pack sizes, with the base 40 kWh battery pack Model S starting at $64,500 Canadian dollars (CAD) before provincial tax rebates, as may be available. Model S with the 60 kWh battery pack and 85 kWh battery pack will start at $75,200 and $85,900 CAD respectively.

"Pricing in foreign markets can be very complex, so we have taken a very straightforward, transparent approach to pricing Model S," said George Blankenship, vice president worldwide sales and ownership experience. "Canadian base prices start with U.S. pricing, plus 6.1 percent for import duties and an additional 1.5 to 2 percent, depending upon the model, for incremental transportation costs and country specific business expenses. The total is then adjusted using the current mid-term currency exchange rate."

Option pricing has also been kept very straightforward. In Canada, all models will include heated seats and choice of décor as standard equipment. Model S in Canada will also include the game-changing 17" touchscreen, 19" wheels and a Mobile Connector with three adapters as standard equipment. Tesla's Canadian pricing configurator, showing all pricing and options, will be available on its website in the near future.

With the most energy-dense battery pack in the industry and best-in-class aerodynamics, Model S has the longest range of any production electric car in the world. Model S comes with three battery pack options to fit the unique needs of different drivers. The 85 kWh Model S has received a U.S. fuel economy rating of 89MPGe and a range of 265 miles from the U.S. EPA. Fuel economy ratings from Environment Canada are still pending.

Model S is the first premium sedan designed from the ground up to take full advantage of electric vehicle architecture. A revolutionary powertrain sits under the floorboard of Model S, creating an ultra-low center of gravity. Paired with an aluminum body engineered for superior handling, Tesla has created a vehicle that will raise the bar for vehicle handling and efficiency while meeting the highest standards for safety.

Without an internal combustion engine or transmission tunnel, the interior of Model S has more cargo space than any other sedan in its class and includes a second trunk under the hood. Model S seats five adults and two children in optional rear-facing child seats. The Performance Model S accelerates from 0 to 60 mph in as little as 4.4 seconds. The interior features a 17" in-dash touchscreen with internet capabilities, allowing for streaming radio, web browsing and navigation.

More than 12,200 reservations have been made worldwide for Model S. Deliveries to Canadian customers will begin later this year. Meanwhile, Tesla will be opening its first new-design Canadian store in Toronto this November. Customers can reserve a Model S at one of Tesla's retail stores or online.

About Tesla
Tesla's goal is to accelerate the world's transition to electric mobility. Palo Alto, California-based Tesla designs and manufactures EVs and EV power train components for partners such as Toyota and Daimler. Tesla has delivered more than 2,350 Roadsters to customers worldwide. Model S, the first premium sedan to be built from the ground up as an electric vehicle, began deliveries in June 2012.

Forward-Looking Statements
Certain statements in this press release, including statements regarding the characteristics and performance of Model S, future store openings in Canada and information regarding Model S handling, efficiency and safety, are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. Various important factors could cause actual results to differ materially, including the risks identified in our SEC filings. Tesla disclaims any obligation to update this information.

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Media Contact

Shanna Hendriks

Tesla Motors

650-681-5179

 

[microsurf]

I guess that's about what I expected. At least in Ontario there currently exists an $8500 tax credit for EVs ( Quebec - $8,000, British Columbia -$5,000). This brings the base model to $56,000. It sucks we have to pay more, but we're used to that.

Now, it's just a matter of saving my loonies.

 

[PaulM]

U.S. pricing, plus 6.1 percent for import duties

Why would they have to pay the 6.1% import duty? That only applies to cars which aren't manufactured in North-America.

 

[mnx]

Horray! Hopefully we get the e-mail to config next week.

 

[mnx]

Why would they have to pay the 6.1% import duty? That only applies to cars which aren't manufactured in North-America.

Batteries represent a signifigant cost of the car and they are made in Japan by panasonic...

 

[Jgdixon]

Remember when comparing to the US pricing, their's has the federal tax rebate of $7500 already deducted. These prices are before any provincial rebate. (Ontario $8500) When I do my calculations it is more than the 6.1% and the 1 to 2% over the US

 

[clea]

and to compare apples to apples we need to consider that the nappa leather seats are now included ...

from http://www.teslamotors.com/en_CA/models/options

Included Upgrades

• Nappa leather interior with choice of color and décor

 

[Jgdixon]

and to compare apples to apples we need to consider that the nappa leather seats are now included ...

from http://www.teslamotors.com/en_CA/models/options

Included Upgrades

• Nappa leather interior with choice of color and décor

Ah, I missed that. That accounts for almost all the difference. So it appears they have priced it almost at par.
(other than the 6.1 and 2%)

 

[microsurf]

With the leather, it almost works out. ((49,900 + 7500 + 1500)*1.061)*1.02 = 63742. The CND price is $64,500.

In Ontario the price after tax credit is closer to working out as there is $1000 extra tax credit over the $7500 American one.

((49,900 + 1500)*1.061)*1.02 = $55626 USD vs 64,500-8500 = $56,000 CAD.

 

[microsurf]

All the options are pricier too. Except for the $250 Parcel Shelf. WOOT!

 

[Doug_G]

Remember when comparing to the US pricing, their's has the federal tax rebate of $7500 already deducted. These prices are before any provincial rebate. (Ontario $8500) When I do my calculations it is more than the 6.1% and the 1 to 2% over the US

Signature Performance US Price is $97,900 + $7,500 (because they include the rebate). Multiply by 1.061 for duty (grrr!) and 1.02 for exchange rate (could be worse) we get $114,066. Canadian list price is $114,300. Pretty close - suggests an exchange rate of 2.21%.

With the Ontario rebate the price will effectively be $105,800.

Don't forget to add delivery charges, HST, air conditioner tax, and tire tax.

It's disappointing that we have to pay import duty. At least they didn't completely hose us on the exchange rate - the Roadster was a lot worse.

 

[mnx]

The options page says signature deliveries begin late 2012... can't wait!

Model S Options and Pricing | Tesla Motors

 

[clea]

The options page says signature deliveries begin late 2012... can't wait!

Model S Options and Pricing | Tesla Motors

it says that even for the general production cars ... need to have some grains of salt handy until we get some people finalizing their purchase agreements and get some delivery date estimates.

 

[Doug_G]

Interesting point for the non-signature, non-performance Model S - it looks like all Canadian cars come with 12-way adjustable heated seats. Including cloth seats. No extra charge. Also it appears that you can choose your interior color; the Americans are limited to Piano Black.

Doesn't make any difference if you're getting Performance and/or Signature, of course.

 

[Prime Mover]

Just saw Hans, Eli and Lisa at Yorkdale Mall in Toronto where they are displaying a Black Model S Beta outside the Apple Store.
Lots of interest from shoppers and great news that Canadian pricing is finally announced (that must make their sales discussions with potential customers a lot easier)!

I am hopeful that the plan is still to deliver the 200 Canadian Sigs right after the 1000 Sig US run. Late October is my prediction (expectation/anticipation/begging-wish) for delivery to me.
I think we will see our "Time to Configure" emails soon as Tesla will then be able to lock-down all the $40K deposits from Canada and get ready to build!!!

 

[brianman]

In Canada, all models will include heated seats and choice of décor as standard equipment.

This is worthy of its own thread.

 

[KBF]

It seems like they really want Canadians to get P's, if they're not charging for leather that Sig premium is rising quickly!

 

[KBF]

It looks like a bit of a premium on all the options. Too bad today is my "work outside of the home day"... I should get back to work! Once I crunch the numbers I may be switching to P. If the battery is the cause of the duty, I'll gladly buy a 0 kWh battery and buy the battery separately from the car. No reason I can see that this isn't possible, but I'm no lawyer. :wink:

 

[Jgdixon]

Here is a direct response from George over at the Tesla site forums.

gblankenship | August 15, 2012Hi everyone. There seems to be a bit of confusion surrounding this issue.
Brian H, you are correct.
pbrulott, unfortunately, all cars manufactured in North America cannot be imported into Canada duty free. In order to be duty free, a minimum percentage of the car must be made in North America. Model S falls slightly below that percentage, so our cars cannot be brought into Canada duty free. We must pay the 6.1% import duty. We do not have a choice. That is the only reason why we are including it in our pricing.
I hope this helps make things a little clearer regarding the 6.1%.
Regarding the overall math, here's how we see the build up:
US Base price
+ $1,500 USD for interior upgrade
+ 6.1% duty
+ 1.5% to 2% for incremental transportation and business costs
Then convert this total using a mid-term currency conversion rate
That's the way we did it.

 

[mknox]

The model I'm interested in is a fully loaded 85 kWh Production job minus the 21" wheels and with the less expensive Metallic paint, but every other option.

I put together a spreadsheet adding everything up, tacked on HST then subtracted the $8,500 Ontario rebate. I used the US values of $990 and $180 respectively for Delivery and Prep (although Cdn numbers will likely be higher). No air tax, tire tax, licence fee etc. because they will be relatively small anyway.

I come up with $102,149.60 CDN, and when I use the US prices (same spreadsheet model), I get $93,505.10. That's over $8,600, or a 9.2% spread.

I'm going to have to think hard about this. $93,000 is already about 50% more than I've ever spent on a car, and seeing 6 figures really gives me pause. I've modeled about $18,000 over 5 years in fuel and maintenance savings, but that still makes for a pretty darned expensive car. I worry about what insurance premiums are going to look like on something this pricey too.

Any other Canadian users having second thoughts, or thinking about cutting back on the options?

Mike