Tesla gets creative with its Model 3 pricing to qualify for federal electric vehicle rebates - home battery pack
Tesla's announcement that it would reduce the retail price of its popular Model 3 electric vehicle to $44,999 in Canada seems to be a move that barely qualifies the vehicle for a government $5,000 reward for green cars.
On May 1, the federal budget announced the incentive, which will be available to car buyers from the start.
But when the subsidy was first announced, Tesla's car seemed
Most popular electric vehicles on the market
Because Ottawa will only provide subsidies for vehicles that cost less than $45,000, but in the past few months Tesla seems creative in car pricing and eligible for kickbacks.
The company is currently selling a Model 3 vehicle with a mileage of only 150 kilometers, far below the 386 kilometers listed in the standard base model. That new ultra-short-
The range is priced at $44,999. But the price-
Label distortion did not stop.
The federal plan stipulates that vehicles with a base price of less than $45,000 are eligible for an additional price
Up to $10,000, bringing the total price of the vehicle to $55,000.
This means that the standard Tesla Model 3, which retails for $53,700, will also receive a rebate.
The federal government seems to support this price-fixing scheme because Model 3 is one of the eligible vehicles.
John Zhang, an analyst at research firm IDC, said Tesla is doing everything it can to convince customers that they should never buy the 150-kilometer-long car.
"The 150 km series is actually just a deterrent Tesla is trying to create to minimize the number of customers buying this 150 km Series Model 3.
Because in order for higher-priced variants to get kickbacks as well, there needs to be a base model below $45 k, which is basically what Tesla does, Zhang said.
"Another evidence that Tesla prevents customers from buying this model is that you can't order this particular car online.
Orders need to be placed over the phone or through the Tesla store.
Therefore, Tesla wants customers to purchase a higher-priced Standard series Plus model with a series of 386 km.
"Zhang also said that version 150 km is actually the same as version 386 km's battery pack, and the range is limited only by software locks, so customers can pay to upgrade their cars after purchase.
This is not the first time Tesla has been involved in this pricing, Zhang said.
"Tesla had a similar situation in Germany before.
From a policy point of view, rebates do not include the best --
"Selling electric vehicles in Canada partially defeats the goal of putting incentives first, that is, promoting/increasing the adoption of electric vehicles," he said . ".
"Now that the base model 3 is included, it is leveling the site and the customer has another option when making a purchase decision.