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Model S - Canadian pricing

Good news for our friends up north, Canadian pricing is out!

TSLA - NASDAQ

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.

I expect Canadian Sigs will start getting the "Time to build you model S" soon.

Maybe we will hit 5000 deliveries in 2012 after all.
 
Last edited:
An excerpt from the press release:

Option pricing has also been kept very straightforward. In Canada, all models will include heated seats and choice of décor as standard equipment.

Does this mean even the base models with cloth seats will have heating? If so, great news for those who dislike leather and wanted the heated seats.
Also, it appears the base model will not be stuck with piano black as the only interior trim option.

Chances of these changes being applied to US Prod?
 
Even the base model gets leather. But the fact that it doesn't meet NAFTA and gets the 6.1% price increase is a hard hit. Really disappointed...

Yeah, that's too bad. Not sure how they come up with the percentages for how much of the car is made in North America, but the Panasonic battery (made in Japan I believe) puts the car under the minimum percentage established by NAFTA --> so Canada gets hit with the 6.1% import duty (GeorgeB confirmed this on the TM board: Canadian pricing out... i am in tears | Forums | Tesla Motors).
 
RKM:

You are correct - the batteries themselves are duty free, under Section 8507.80.20 00 of the Most Favored Nations Treaty Tariff Schedule. Further, the work involved in building the cells into packs, etc. is NAFTA input.

I don't believe that Tesla really crunched the numbers and calculated the accumulations in the most favorable way. After all, it's not a cost to Tesla -- the duty is just a pass through, so they don't really have an incentive to spend a lot of resources on this issue. There are other reasons that Tesla should be concerned about not having a U.S. made product, tho. Remember Fisker's problem with the government loan?
 
I need to modify my post of a few minutes ago. The fact that the batteries can be imported duty free (Japan is one of the Most Favored Nations treaty countries) doesn't necessarily bear on the issue of accumulation for NAFTA purposes. The determination of origin is complicated beyond my ability to comprehend. My main concern is that the Model S won't be recognized as a U.S. product, and the implications that might have.
 

markwj

Asia Pacific
Moderator
Apr 10, 2011
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I don't believe that Tesla really crunched the numbers and calculated the accumulations in the most favorable way. After all, it's not a cost to Tesla -- the duty is just a pass through, so they don't really have an incentive to spend a lot of resources on this issue.

Their incentive is that if they can sell the car at 6.1% less, they're going to sell more cars.
 

KBF

Model X owner (formerly Cdn Signature Model S)
And there is significant discussion on the Canadian regional section here that shows at least a few TMC diehards need to downgrade options because of it. 6.1% is significant on 6-figure purchases.

*edit: this means our government pockets the extra 6% that otherwise Tesla would make (or at least about 30% of that 6% as extra margin)
 

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