Model Y should be $6500 cheaper in Canada

[Oveeus]

Again, guys, you are making pricing comparison using the currency exchange TODAY.

When Tesla decided on the current pricing, it uses a model to forecast for every major variable then project it onto a period of time, say 6mth or whatever, to decide on budgeting and forecasting.

It's not unique to Tesla... every automakers, commodity company (gold, petro, mining) or your local grocery chains all do this. They cannot function otherwise.

They don't change their pricing just because today's forex is more or less favorable because they have already been factored into to a certain degree. If it went better than forecasted, it's treated as a forex windfall or alternatively (when it's worse than forecasted) a forex surcharge. It happens all the time.

I'm a canucks myself and I'm not complaining, because you never know when it's going to fall in your favor and it's out of your control. The only choice you can make is to buy it now or later. If you are not happy with the pricing, walk away.

The only regret I have with my Teslas (now that I have 2) was not getting them earlier and all the money wasted on my ICE vehicles.

You can either keep complaining about that $4500 difference or just enjoy it already. If you are planning to keep the car for 8-10yrs... what difference does that make? What if Tesla simply decide to stick with the pricing as is?

 

[BJCanadaMax]

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.

They really should just shutdown their US factories and ship China made cars.

 

[OttawaSRPlus]

Again, guys, you are making pricing comparison using the currency exchange TODAY.

When Tesla decided on the current pricing, it uses a model to forecast for every major variable then project it onto a period of time, say 6mth or whatever, to decide on budgeting and forecasting.

It's not unique to Tesla... every automakers, commodity company (gold, petro, mining) or your local grocery chains all do this. They cannot function otherwise.

They don't change their pricing just because today's forex is more or less favorable because they have already been factored into to a certain degree. If it went better than forecasted, it's treated as a forex windfall or alternatively (when it's worse than forecasted) a forex surcharge. It happens all the time.

I'm a canucks myself and I'm not complaining, because you never know when it's going to fall in your favor and it's out of your control. The only choice you can make is to buy it now or later. If you are not happy with the pricing, walk away.

The only regret I have with my Teslas (now that I have 2) was not getting them earlier and all the money wasted on my ICE vehicles.

You can either keep complaining about that $4500 difference or just enjoy it already. If you are planning to keep the car for 8-10yrs... what difference does that make? What if Tesla simply decide to stick with the pricing as is?

They just passed on a 30k CAD haircut to chinese MY buyers. New year = new financial guidance. They could reset their pricing any time they want to.

It’s 6500 spread + 13% HST for most of us. With taxes that’s a 10% spread vs USA/China pricing. Most auto manufacturers are 1-3% spread vs USA pricing.

 

[MexiCanuck]

Different markets have different pricing.

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.

Yes, different laws, different costs of doing business, different competitive factors, and other aspects are involved in setting prices for the same product in different jurisdictions.

Check the price of the Model Y in another NAFTA country, Mexico.

M$1,309,900 = C$83,766.05

 

[Twiglett]

same question was asked last year
Cost to Import from US? Possible? Not worth it?

 

[Oveeus]

They just passed on a 30k CAD haircut to chinese MY buyers. New year = new financial guidance. They could reset their pricing any time they want to.

It’s 6500 spread + 13% HST for most of us. With taxes that’s a 10% spread vs USA/China pricing. Most auto manufacturers are 1-3% spread vs USA pricing.

Again, you are factoring only the pricing while disregarding everything else such as market competition, affordability, cost of doing business... etc

What Tesla, or any manufacturer does in pricing in other market is irrelevant. What matters is here in Canada.

Do you really want Tesla to implement a pricing model where it might be good for me, and not so good for you simply depends on the time we talk to the sales? After all, forex fluctuates every moment. And the moment you signed the papers, you either pay that right away or the price can be different again? That's basically what the old dealership model is, and I have ZERO desire of going back. Just let me know the price, I will take it if I like it, if I don't, I walk away.

It's that simple.

You don't like CDN pricing, go US and buy one and go through the whole ordeal to import one back. Many Canucks have done just that when our loonies was at parity.

 

[Lon12]

Again, you are factoring only the pricing while disregarding everything else such as market competition, affordability, cost of doing business... etc

What Tesla, or any manufacturer does in pricing in other market is irrelevant. What matters is here in Canada.

Do you really want Tesla to implement a pricing model where it might be good for me, and not so good for you simply depends on the time we talk to the sales? After all, forex fluctuates every moment. And the moment you signed the papers, you either pay that right away or the price can be different again? That's basically what the old dealership model is, and I have ZERO desire of going back. Just let me know the price, I will take it if I like it, if I don't, I walk away.

It's that simple.

You don't like CDN pricing, go US and buy one and go through the whole ordeal to import one back. Many Canucks have done just that when our loonies was at parity.

Sorry. But I’m not the only one tired of paying more than our neighbors for a vehicle. Remember when our dollar was at par:
https://www.cbc.ca/amp/1.1141083
When I purchased a Honda Odyssey in 2002 the dealership made me sign that I would not sell it to an American. So I guess it can go both ways.

 

[Oveeus]

Sorry. But I’m not the only one tired of paying more than our neighbors for a vehicle. Remember when our dollar was at par:
https://www.cbc.ca/amp/1.1141083
When I purchased a Honda Odyssey in 2002 the dealership made me sign that I would not sell it to an American. So I guess it can go both ways.

I know you are not the only one. I remember that period clearly because I derive most of my incomes in USD, and it sucked.

All I'm pointing out is that stable pricing is in the best interest of most Tesla consumers. Because always be careful what you wish for.

Let's just say if Tesla REALLY implements a price parity where CDN cars are pegged to their US counterparts depending on say weekly/monthly exchange rate. What's gonna happen?

A thread with title: "Why do we Canadians have to pay for our cars in US pricing?"

 

[DMC-Orangeville]

I know you are not the only one. I remember that period clearly because I derive most of my incomes in USD, and it sucked.

All I'm pointing out is that stable pricing is in the best interest of most Tesla consumers. Because always be careful what you wish for.

Let's just say if Tesla REALLY implements a price parity where CDN cars are pegged to their US counterparts depending on say weekly/monthly exchange rate. What's gonna happen?

A thread with title: "Why do we Canadians have to pay for our cars in US pricing?"

When I was in my "old" job, I spent a lot of my time working with US suppliers that didn't want to have a physical footprint (buildings, people etc.) in Canada. The suppliers that insisted in selling in $US did poorly, unless they had a completely unique value proposition. Canadians, generally, will not take a currency risk, especially with a lead time for supply.

The successful US suppliers, would take a spot price, and currency multiplier, and typically add 3-5% for a fudge factor, and possibly a few more points to allow for the cost of doing business in Canada (meeting Canadian standards, higher labour costs, red tape, shipping etc). If the currency stayed +/- 5% the price would remain the same. Price reductions were always more difficult to explain to customers........ In most cases, the Canadian price was very close to the landed US price.
Exception: Commodities (In my case, conduit, wire and cable) were given about a week, and were priced as "price in effect at delivery date". The previous poster's comment was very relevant " Why do we have to pay for our cars in US pricing" in this scenario.....for even Canadian suppliers of the commodity, base their costs ( and therefor selling price) on steel, copper, and aluminium, which is sold in $US. Many NASTY complaints from Canadian contractors and industrials when this happens

Tesla pretty much follows that formula, and usually, the Canadian cost of the car is +/- 5%. However in times of significant swings, the price can get out of whack. As I stated earlier, my 2015 S was less expensive (by a few thousand dollars) than an American S, when I bought it, as the Canadian dollar was tanking. Today, it's the opposite.

The pricing will eventually float closer to the exchange rate.

 

[coolmanfever]

Tesla dropped their model Y pricing in China to compete with EV market in China which is much more competitive EV than in North America
Bloomberg - Are you a robot?

it is all capitalism at best. If Canadian market have more alternative EV options, Tesla pricing will drop. Maybe once Mustang EV become available in Canada, Model Y pricing in Canada may drop.

My POV is when one buys EV, you are not just buying a car, you are buying a piece of technology that is being improved so quickly every year. Pricing will change and adapt to market condition quickly. Just looking smartphone market.

 

[OttawaSRPlus]

There’s a lot of chatter here about why dynamic pricing can’t be achieved. My issue is that Tesla is supposed to be an innovative company, so when you come on here and say this can’t happen because of x,y,z you sound like ford/gm in the early 00’s talking about how BEVs won’t work.

Tesla, as a company, has defined itself on 2 core principles: (1) being an industry leader in innovation and (2) reducing GHG emissions through the promotion of green energy/transportation.

If we assume that Tesla has figured out what their profit should be in USD/vehicle (since they file financials in USD) then they could conceivably use a slightly advantageous forex spread that re-sets quarterly or monthly and still keeps their profit intact. Look at Chinese MY sales figures after the 30k drop in price. Total profit is a function of spread x volume. Lower spread is offset by higher volumes.

 

[cdswm3]

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.

Your basing it on todays exchange rate. That rate is high now but unlikely to remain high. Tesla uses an average over time. The current prices are good. If exchange rates remain high, then if could be adjusted in about 6 months.

 

[Vawlkus]

Tesla, as a company, has defined itself on 2 core principles: (1) being an industry leader in innovation and (2) reducing GHG emissions through the promotion of green energy/transportation.

Not quite.

Tesla’s core mission is to accelerate EV adoption in order to transition from fossil fuels to renewable energy sources.

This is best achieved by innovation, agreed, but Tesla still must grow the routes to accomplish this. In time they might adopt a more rapidly adjusted pricing system, but right now they’re having enough trouble training their sales and service force, as we have all seen shortfalls in those areas.

When they have the people in place to handle customers screaming about prices that fluctuate daily, they might transition to a daily updated system. Until then, it’s a little easier to have prices that are only adjusted quarterly, or whatever it is now.

 

[Etna]

Tesla dropped their model Y pricing in China to compete with EV market in China which is much more competitive EV than in North America.

The Model Y price drop in China was a bit artificial, as no Model Y was ever sold or delivered at the old price.

The old price set by Tesla China was high (95000 CAD) to protect Model 3 sales. Now that deliveries have started, the new price (66 000 CAD) for the long range Model Y in China is more in line with the US and Canada, like the Model 3.

Nothing to do with EV market situations.

Obviously the usual suspects in the media have been spinning this as a demand problem.

 

[TheRFMan]

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

I'm not certain they could charge a price in USD. When you buy a car here, you're buying from Tesla Canada (the Canadian subsidiary), not the US Tesla Motors. USD is not legal tender in Canada, and I'm pretty sure that a corporation in Canada cannot mandate payment in a currency that is not legal tender. That would be like requiring payment in Bitcoin.

Tesla Motors probably seems to Tesla Canada in USD. That's the forex risk that they need to manage.

 

[MexiCanuck]

There’s a lot of chatter here about why dynamic pricing can’t be achieved. My issue is that Tesla is supposed to be an innovative company, so when you come on here and say this can’t happen because of x,y,z you sound like ford/gm in the early 00’s talking about how BEVs won’t work.

Tesla, as a company, has defined itself on 2 core principles: (1) being an industry leader in innovation and (2) reducing GHG emissions through the promotion of green energy/transportation.

If we assume that Tesla has figured out what their profit should be in USD/vehicle (since they file financials in USD) then they could conceivably use a slightly advantageous forex spread that re-sets quarterly or monthly and still keeps their profit intact. Look at Chinese MY sales figures after the 30k drop in price. Total profit is a function of spread x volume. Lower spread is offset by higher volumes.

It seems to me that every time that Tesla has done “dynamic pricing”, i.e., increasing or decreasing the price of something for a short or long period of time, we read the complaints of Tesla customers.

“I bought X for $Y on date and the next (day/week/month) Tesla dropped the price. That’s not fair. Tesla should refund me.”

We have seen that with the prices of autopilot and/or FSD-capability.

or

“I planned to buy X for $Y on date but before I placed my order Tesla increased the price. That’s not fair. Tesla should let me buy it at the earlier price.”

I remember the latter from the price of the winter wheels package.

 

[OttawaSRPlus]

It seems to me that every time that Tesla has done “dynamic pricing”, i.e., increasing or decreasing the price of something for a short or long period of time, we read the complaints of Tesla customers.

“I bought X for $Y on date and the next (day/week/month) Tesla dropped the price. That’s not fair. Tesla should refund me.”

We have seen that with the prices of autopilot and/or FSD-capability.

or

“I planned to buy X for $Y on date but before I placed my order Tesla increased the price. That’s not fair. Tesla should let me buy it at the earlier price.”

I remember the latter from the price of the winter wheels package.

Let’s say they did quarterly priced adjustments according to a fudged forex spread. They could always do a 30 day price guarantee, ie if car drops in price by more than $500 within 30 days we refund you the difference between $500 and the amount.

Lastly, more frequent resets mean that pice swings are more often not as volatile as the price discrepancy we’re seeing today. Honestly 1k-2k is peanuts at this price level and people who complain about that will complain about anything, but quarterly 5-10k swings yeah would make people upset.

 

[cdswm3]

Let’s say they did quarterly priced adjustments according to a fudged forex spread. They could always do a 30 day price guarantee, ie if car drops in price by more than $500 within 30 days we refund you the difference between $500 and the amount.

Lastly, more frequent resets mean that pice swings are more often not as volatile as the price discrepancy we’re seeing today. Honestly 1k-2k is peanuts at this price level and people who complain about that will complain about anything, but quarterly 5-10k swings yeah would make people upset.

No need to do that. The price is the price.

 

[michaelnorbert]

MY SR is listed at $56290 which is a better spread for USD than the LR.
A better "deal" for Canadians getting the SR compared to LR if that's your preference.
Maybe they will drop the price of the LR.

 

[MexiCanuck]

Let’s say they did quarterly priced adjustments according to a fudged forex spread. They could always do a 30 day price guarantee, ie if car drops in price by more than $500 within 30 days we refund you the difference between $500 and the amount.

Lastly, more frequent resets mean that pice swings are more often not as volatile as the price discrepancy we’re seeing today. Honestly 1k-2k is peanuts at this price level and people who complain about that will complain about anything, but quarterly 5-10k swings yeah would make people upset.

Yes, Tesla could; I’m not sure why Tesla would. If they were having difficulty selling their cars, they might.

As a businesses, Tesla is likely interested in maximizing financial viability. If it is able to sell all of its product at the current price level, I’m not sure what would motivate Tesla to reduce its prices to its own disadvantage.