Exchange Rate

[Scott_L]

USD-CAD exchange rate approaching 0.80 (currently at 0.7944). At what point does Tesla start adjusting prices in the design studio? I remember when the exchange rate was going the other way, there was no stickiness on Tesla's part as prices kept going up and up.

Right now a fully spec'd X100D 6 seater is $127,800 US which translates to $160,900 CAD. That's about $15k cheaper than the CAD price of $175,350.

I know there are government import costs and shipping costs, but $15,000 surcharge seems steep. I'm guessing Tesla probably models the 60 or 90 day moving average of the exchange rate so it will probably take a couple months to be reflected in the price (if at all).

Feels nice to have some positive news with the exchange rate. It's been awhile!

 

[Jaff]

I'd call the store to confirm, but I thought Tesla adjusted for exchange rates quarterly.

 

[mrElbe]

Also a 6% Duty is charged by the Feds for not meeting 62% of NAFTA content rules due to Panasonic made battery. So 6% of CAD$ 160,900.- is CAD$ 9,654.- ( this is a rough calculation. Duty is calculated on factory cost )

 

[RiverBrick]

There is generally a couple of months lag. If the CAD stays at current levels (or strenghtens) there will very likely be a price cut in 1-3 months.

Just in time for Tesla to try to push people to S/X instead of the 3 too.

 

[doubeld]

Super stoked! Every cent the CAD goes up, that's around $1000 towards my Model 3!! I would agree- they probably do have a ~90 day moving average that they would aim for. If memory serves, we've seen at most two price changes within 12 months, but those also may have partially coincided with feature changes in the model line from Fremont.

 

[03DSG]

The dollar is doing exactly the opposite of what the 6 month old forecasts projected. A couple of things going on. The USD is losing some strength worldwide, 1/4 point rate hike here due to the overheated real estate market and consumer debt plus an economy that's outperforming expectations. My bet is another 1/4 point hike at one of the next 3 BOC meetings (Sep 9, Oct 25, Dec 9). The basis for my bet is not real estate but crazy consumer debt levels that have been fuelled by low rates.
There will be some continued momentum to this. Bodes well for us taking delivery next winter/spring. Not to mention no 6.1% NAFTA duty due to the batteries made in the US now for Model 3.

 

[doubeld]

Thanks oil! It's sure helping right now.
The irony of a high oil price for us in Canada is that it both increases the price of fuel, but boosts the CAD which therefore reduces the price of an EV that is manufactured in the US and sold in USD (mostly) for us here.