Model Y should be $6500 cheaper in Canada

[OttawaSRPlus]

Change My View.

US pricing at current exchange rates has Model Y at $63,500 CAD before tax vs the $69,900 CAD we're paying.

Tesla, if you're listening - you could provide Model Y owners in Canada a pseudo 5k rebate similar to M3 SR+ to boost MY sales next year without impacting your built in profit.

 

[Snow Drift]

As far as I know, most cars in Canada cost more than the US. This is due to the smaller population, and smaller number of vehicles sold, so the higher price helps to offset the cost of doing business in Canada. It is not really due to exchange rates.

Beautiful country though!
<-- 25% Quebecois

 

[SSedan]

They really should vary price in real time based on the exchange market...............what the hell are they thinking trying to cover the exchange variations and import costs

 

[DMC-Orangeville]

As far as I know, most cars in Canada cost more than the US. This is due to the smaller population, and smaller number of vehicles sold, so the higher price helps to offset the cost of doing business in Canada. It is not really due to exchange rates.

Beautiful country though!
<-- 25% Quebecois

Not really true. North American car prices can vary. Most manufacturers set their rate, with a bit of a fudge factor, at the beginning of the model year. Generally the price of North American-made cars is similar. Depending on the currency exchange over the year, the car may be less expensive on either side of the border. When I bought my S, it was a couple of thousand less to buy it in Canada, comparing exchange rates at that time. Used S cars were considerably less in Canada....many of the members in our Tesla club sold their cars to American buyers

Note: there are some different items in the Canadian models that do add a small cost to US numbers, hhe biggest being daytime running lights. It usually doesn't add up to more than $1000

 

[DMC-Orangeville]

Change My View.

US pricing at current exchange rates has Model Y at $63,500 CAD before tax vs the $69,900 CAD we're paying.

Tesla, if you're listening - you could provide Model Y owners in Canada a pseudo 5k rebate similar to M3 SR+ to boost MY sales next year without impacting your built in profit.

The Canadian dollar has increased significantly since March....In March it was approx $1.42 CDN to buy $1 US. Today it's about $1.28 CDN for $1 US. Tesla does adjust prices periodically to allow for currency appreciation/depreciation. I suspect we'll see something in the new year.
Compare Y LR (No options)$US 49,990 @ 1.42 = $70,958 vs @1.28 = $63,987
Current $CDN price at Tesla: $69,990. This was set some time just prior to Canadian release....fairly close to the March rate. The first deliveries in Canada were in June, which meant pricing would have been set a few months prior to then.

Price reductions are easier to swallow when it's hidden in an upgraded model. The S and/or X may have a refresh, and that could introduce a lower price with it. The S has a $13,000 difference right now ($69,420 @ 1.28 = $88,857 VS $101,990).
It will be interesting to see what they do with the 3 and Y

 

[McFlurri]

Tweet Elon. Seems to be the only way to get things done....

 

[rypalmer]

It is a big premium for Canadian buyers. I'm not likely to buy until this comes back to a more normal balance.

Model Y for Canada!

 

[Oveeus]

It's not that simple in pricing, which by itself is a science because it takes account into forex hedging, costs of operation in the country and everything in between. It's not a commodity when you always take spot pricing for it at purchase depending on market conditions.

Look at it this way, earlier in the year when CAD:USD is 1.4x:1, which might have made CDN pricing cheaper than their US counterparts, would you be willing to forgo the saving? The answer is likely a no.

It might be cheaper by calculating at this point in time, but Tesla doesn't look at pricing for this particular moment only, but rather set a pricing for a pre-determined period based on the market study, cost of operations and many other factors. They make adjustments from time to time but as an enterprise, they need to fix it to some valuation because otherwise, they cannot do proper budgeting and forecasting.

And as a consumer, you wouldn't want to buy stuff that always fluctuates in pricing.

 

[SSedan]

How about focussing on profits to keep stock price up and it seems delivering in USA is likely cheaper so they to put a premium on shipping north.

 

[BJCanadaMax]

Agree for lower price for obvious reasons. But i think that they needs to concentrate on consistently making cars that don't need to be returned for fixes. Consumers should not be the QAs.

 

[xG35]

They changed it once 4 years ago, when i bought my S. Back then it was the CDN weakening.

 

[TrevTremaine]

They changed it once 4 years ago, when i bought my S. Back then it was the CDN weakening.

Exactly. Even though I was in the middle of an order back in 2016, Tesla honored the price drop (ordered but not delivered). Usually, if there's a price change they'll adjust the it right up until the time of delivery or thereabouts. That was around March/April or that year by my recollection, so if/when they do another price adjustment it's not necessarily at a model year change either.

 

[michaelnorbert]

I'm sure US buyers would love to pay our price for FSD based on exchange rates. 10600 CDN would be around $8300 US.

 

[Threader]

I'm sure US buyers would love to pay our price for FSD based on exchange rates. 10600 CDN would be around $8300 US.

Current Canadian FSD price is based on old USA non-beta FSD price of $8000 because Beta is not yet initiated in Canada. The moment it is our FSD price will be > $13000.

 

[Twiglett]

Change My View.

US pricing at current exchange rates has Model Y at $63,500 CAD before tax vs the $69,900 CAD we're paying.

Tesla, if you're listening - you could provide Model Y owners in Canada a pseudo 5k rebate similar to M3 SR+ to boost MY sales next year without impacting your built in profit.

Interesting (though wildly simplistic) perspective on "built in profit" which assumes it costs zero to import a car into a country, meet and maintain country specific rules and regulations, cover import duty & taxes, make customizations to the car for said regulations, maintain software changes specific to those rules etc, etc, etc, etc.

 

[OttawaSRPlus]

Model Y just got bio defense hepa filters + heated steering wheel in China for the equivalent of 63k CAD. All that plus better build quality.

Also Tesla could just introduce USD pricing worldwide instead of re-setting prices every few years. They get to keep profits constant and get more EV on the road which is their company’s mission.

 

[Twiglett]

I'd love some of the folks tagging disagree on my post to try to come up with actual arguments as to why a company should just ignore import charges so they can keep the price as a direct exchange rate.
Not aware of any car company that charges the US price in another country that it exports car to, but happy to see examples.
Actually, not aware of ANY company that does this - again, happy to see examples.

 

[OttawaSRPlus]

I'd love some of the folks tagging disagree on my post to try to come up with actual arguments as to why a company should just ignore import charges so they can keep the price as a direct exchange rate.
Not aware of any car company that charges the US price in another country that it exports car to, but happy to see examples.
Actually, not aware of ANY company that does this - again, happy to see examples.

Tesla doesn’t follow any of the rules of other car companies so why should they start now? They don’t negotiate prices, they don’t have model years, they have limited trims/specs. Additionally, they have told customers they would dynamically change prices on exchange rates in the past.

 

[rypalmer]

I'd love some of the folks tagging disagree on my post to try to come up with actual arguments as to why a company should just ignore import charges so they can keep the price as a direct exchange rate.

Sure.

TESLA MOTORS ANNOUNCES CANADIAN PRICING FOR MODEL S

Does the "6.1 percent for import duties" apply for a vehicle whose batteries are made domestically in the US? Thinking probably not.

In which case Tesla's own guidance for this (dated, albeit) is for an "additional 1.5 to 2 percent, depending upon the model, for incremental transportation costs and country specific business expenses". Adding 2% to the US price would put the base LR AWD Model Y at $65,000 CAD. Right now it's $70,000 CAD.

 

[Twiglett]

still seeing nothing that explains how Tesla should be charging US price in another country.