Tesla to sell China-made Model 3/Y in Canada
China-made Model 3 / Y
On May 23, Tesla will sell China-made Model 3 and Model Y models in Canada, confirming that the company has completed its first shipment from the Shanghai factory to North America.
The rear-wheel-drive Model Y and long-range all-wheel-drive Model 3 are currently available for immediate delivery in British Columbia, Canada, according to Tesla’s website. Both vehicles are eligible for a $5,000 federal government subsidy. But it’s unclear how many Chinese-made Tesla vehicles are available for purchase in Canada, or how many have already been sold.
Cars made at Tesla’s Shanghai plant for export to overseas markets could help sell cars made at its California and Texas factories in the U.S., which would qualify for potential taxes of up to $7,500 under a U.S. government subsidy program discount. But Tesla faces increasing competition on price and features from Chinese electric carmakers, and its Berlin factory has been ramping up production of the Model Y for European customers.
Tesla’s production base in China has taken advantage of the company’s global cost advantage. The China-made Model Y is priced at C$61,990 in Canada, which is about 22% more than the cost of an equivalent car before China introduced the incentives. However, because Canada does not tie electric vehicle subsidies to the location of vehicle production plants, Tesla is able to export China-made Model 3 and Model Y vehicles to Canada, and these models are also eligible for subsidies.
The codes used by Tesla Motors when listing vehicles for sale correspond to the first three digits of the Vehicle Identification Number (VIN). The VINs of Tesla models produced at the Shanghai factory all start with the letters “LRW”, so It can be judged that the Model 3 and Model Y sold in Canada are manufactured by Tesla’s Shanghai factory. Sales of Tesla vehicles in Canada will help expand its market share in North America, while also providing a new market for Tesla vehicles made in China.
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