Canadian pricing

[RiverBrick]

edit - I found the source for the graph here but it doesn't seem to explain how they deal with jurisdictions with 0 SCs.

Those places are tied for last in the number of Superchargers, but they are also near the bottom in population as well, so they end up with scores near zero. Quebec stands out as #16 in the number of residents while still being 40th or worse in Superchargers.


The margin has generally been less on S and X sales in Canada than in the USA due to Tesla absorbing the 6% duty for not enough North American content. With the battery manufacturing shifted to Nevada, perhaps this duty will disappear and Tesla will devout more resources to the Canadian Supercharger network.

 

[Doug_G]

The margin has generally been less on S and X sales in Canada than in the USA due to Tesla absorbing the 6% duty for not enough North American content. With the battery manufacturing shifted to Nevada, perhaps this duty will disappear and Tesla will devout more resources to the Canadian Supercharger network.

I looked at this way back when I bought my Signature. Canadian cars were configured with a couple of minor options, and then you included exchange and the 6% duty, and the price was right in line with the US pricing.

I've not recalculated since then, but Tesla hasn't been shy about raising the price! I'm sure they're including the 6%.

 

[RiverBrick]

[

I looked at this way back when I bought my Signature. Canadian cars were configured with a couple of minor options, and then you included exchange and the 6% duty, and the price was right in line with the US pricing.

I've not recalculated since then, but Tesla hasn't been shy about raising the price! I'm sure they're including the 6%

Unless the default base configurations are different, the CAD price cis urrently 1.361 times more than the USA one, which is almost identical to 1.358 rate listed on xe.com as I type this. $69,500x1.06*1.358=$100,043 compared to the actual Canadian price of $94,650.

Since when the CAD started tanking (with the exception of during an early 2016 rally) the Canadian price has generally not taken into account the 6% duty. Perhaps some of it is due to lag between shifting exchange rates and price adjustments, but maybe some of it is also due to Tesla believing the Canadian market is more sensible to price.

 

[Duckjybe]

But what puzzles me is how the other car companies such as Porsche and Land Rover in Canada can get away with only marking up their prices 10-20% compared to the U.S. where Tesla is marking up 35-40% compared to the US prices. I found this out when I compared the Cayenne and Range Rover US and Canada prices to the Model X. I suppose it is based on where a company is located and whether they hedge currency. This puts Tesla at a very large price disadvantage in Canada and means the Model 3 base could start at 50K.

 

[ItsNotAboutTheMoney]

But what puzzles me is how the other car companies such as Porsche and Land Rover in Canada can get away with only marking up their prices 10-20% compared to the U.S. where Tesla is marking up 35-40% compared to the US prices. I found this out when I compared the Cayenne and Range Rover US and Canada prices to the Model X. I suppose it is based on where a company is located and whether they hedge currency. This puts Tesla at a very large price disadvantage in Canada and means the Model 3 base could start at 50K.

Maybe it's because they have inflated US prices.

 

[Vawlkus]

It's largely due to Tesla vehicles not falling under NAFTA. Thus, they get hit with tarrifs/taxes coming over the border.

 

[RiverBrick]

But what puzzles me is how the other car companies such as Porsche and Land Rover in Canada can get away with only marking up their prices 10-20% compared to the U.S. where Tesla is marking up 35-40% compared to the US prices...

I don't have the answer, but didn't Porsche and Land Rover have the same markups when the CAD was as strong or even stronger than the USD?

In 2014, a Panamera driver test-drove my S. He had purchased his car in the States because it was cheaper there.

 

[sitter_k]

It's largely due to Tesla vehicles not falling under NAFTA. Thus, they get hit with tarrifs/taxes coming over the border.

Is that a specific line item in your invoice or is it just in the pricing....?

 

[rypalmer]

I don't get how people don't understand the basic math behind exchange rates.

Either way, please take this conversation to its own thread.

 

[Whisky]

But what puzzles me is how the other car companies such as Porsche and Land Rover in Canada can get away with only marking up their prices 10-20% compared to the U.S. where Tesla is marking up 35-40% compared to the US prices. I found this out when I compared the Cayenne and Range Rover US and Canada prices to the Model X. I suppose it is based on where a company is located and whether they hedge currency. This puts Tesla at a very large price disadvantage in Canada and means the Model 3 base could start at 50K.

I can't say if this is true today, but over the last decade when I bought BMWs the price has been around the same, but the packages varied in value. Package A in Canada isn't always the same as the equivalent Package in the US. When the currency valuations were at par, Canadian BMWs came with more as standard features. When the currency diverged again, you'd pay more for certain packages.

I'm sure there's a NAFTA component to it. There's a long-term pricing elasticity component large companies use as well. They'd rather keep prices consistent, than rock consumers by changing currency rate. Tesla is probably too young to do this. They're far too affected by changing margins. Tesla's "new wage of thinking" doesn't always end up in our favour.

 

[sitter_k]

I can't say if this is true today, but over the last decade when I bought BMWs the price has been around the same, but the packages varied in value. Package A in Canada isn't always the same as the equivalent Package in the US. When the currency valuations were at par, Canadian BMWs came with more as standard features. When the currency diverged again, you'd pay more for certain packages.

I'm sure there's a NAFTA component to it. There's a long-term pricing elasticity component large companies use as well. They'd rather keep prices consistent, than rock consumers by changing currency rate. Tesla is probably too young to do this. They're far too affected by changing margins. Tesla's "new wage of thinking" doesn't always end up in our favour.

Just waiting for Trump to make my Tesla cheaper to import to Canada, that or end the world.

 

[Whisky]

Just waiting for Trump to make my Tesla cheaper to import to Canada, that or end the world.

Ha right? That was my original plan as well, but I have a two-door car and twins on the way, so had to pull the tigger a little earlier than I would have otherwise.

 

[sitter_k]

Ha right? That was my original plan as well, but I have a two-door car and twins on the way, so had to pull the tigger a little earlier than I would have otherwise.

Get a 3 year old used place holder in the meantime. Shouldn't depreciate too much till the model 3 or S...