• Tesla has reduced the pricing of its Model 3 in Canada by $5,000.
• Dropping the price to $54,990 makes the model eligible for government rebates.
• The company's price cuts, also being applied to other models, are intended to make the products more competitive as rivals multiply on the market.
Tesla is bringing in the new year with price cuts across its lineup in many markets around the world, including Canada. Most relevant for consumers here is the $5,000 drop in pricing for the all-wheel-drive Model 3, the brand's entry-level vehicle in Canada.
And that’s in part because, by dropping to $54,990, Tesla renders the Model 3 eligible for government rebates under the federal Zero Emission Vehicle (iZEV) program, as well as similar incentives programs in place in Quebec, British Columbia, New Brunswick, Nova Scotia and Prince Edward Island.
Depending on where you live in Canada, that can double or even triple the rebate available on top of the federal one.
This price drop represents an 11-percent reduction from the pricing at the outset of the year. Previously, the model started at $59,990 before shipping and preparation fees, set at $190 domestically. Note that those fees do not affect program eligibility.
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Tesla has also significantly reduced the prices of the Model S midsize sedan and the Model Y and Model X SUVs, this after missing its own global delivery targets for 2022.
As with every vehicle price reduction announcement, there will be happy customers jumping on the occasion, but also grumbling from those, say, purchased the model last month. That’s a phenomenon that can apply to any grocery item, but let’s agree that when you’re talking about the large sums attached to buying a car, the grumbling might be little louder.