This is why we think the SR Model Y will soon be $5,000 cheaper in Canada [Update]

Model Y

Tesla made a surprise announcement earlier this month by adding a Standard Range (SR) Model Y to its lineup, after CEO Elon Musk said the company would no longer make one.

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Soon after, both British Columbia and Quebec added it to their lists of vehicles eligible for their provincial rebates. While the Yukon doesn’t maintain a list of their qualifying vehicles, it should also qualify there.

Unfortunately based on the current rules of the iZEV rebate program, the SR Model Y doesn’t qualify for the federal $5,000 rebate. But we think that will soon change based on a hint from Tesla’s pricing structure.

What does it take to qualify for the iZEV rebate?

According to Transport Canada, to qualify for the rebate you must purchase or lease:

  • a vehicle with six seats or fewer, where the base model (trim) Manufacturer’s Suggested Retail Price (MSRP) is less than $45,000;
    • higher priced versions (trims) of these vehicles, up to a maximum Manufacturer’s Suggested Retail Price (MSRP) of $55,000, will also be eligible for purchase incentives;

The current MSRP of the SR Model Y is $54,900 ($56,290 minus fees).

What Tesla needs to do to make it qualify

To qualify Tesla would need to introduce a software locked Model Y and price it under $45,000. By doing so the “higher priced versions” up to $55,000 will also qualify. This isn’t unheard of as they did this exact thing by adding a 150km off-menu Standard Range Model 3 in 2019.

Why we think Tesla will do just that

There are some hints within Tesla’s SR Model Y pricing decision that lead us to believe it is only a matter of time before it adds a software locked version.

SR Model Y price Canada

Hint #1. Tesla priced the SR Model Y in Canada at $56,290. When you take out the $1,280 destination and documentation fee, $100 air conditioning fee and $10 OMVIC fee, the MSRP is $54,900, just $100 below the upper limit of the program rules.

Hint #2. If they had followed their pricing convention and put it at $56,990, the MSRP would have been $55,600 and over the limit. Its current price is the lowest it could be to get it under the $55,000 limit. Even $100 more would have been too much.

Hint #3. It is the only vehicle in Tesla’s lineup where the price doesn’t end in $990.

The next question is why haven’t they done this already? The most likely answer is Tesla is still waiting on approvals from Transport Canada. With a simultaneous announcement of the SR Model Y in Canada and the US, they likely weren’t going to push it back because of a slow-moving Canadian government body.

Of course this is all speculation and the SR Model Y may never qualify for the iZEV rebate, but we think everything is pointing at this coming soon.

What do you think? Let us know in the comments below.

UPDATE: There have been some questions regarding the 7-seat configuration and how it relates to the iZEV rebate. Based on our interpretation of the rules, the program deals with 6 or fewer seats and 7-seat vehicles separately. As a result, there would need to be a base 7-seat Model Y priced under $55,000. Here is the relevant statement from Transport Canada.

a vehicle with seven seats or greater, where the base model Manufacturer’s Suggested Retail Price (MSRP) is less than $55,000;

  • higher priced versions (trims) of these vehicles, up to a maximum Manufacturer’s Suggested Retail Price (MSRP) of $60,000, will also be eligible for purchase incentives;

 

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About Darryn John 2059 Articles
Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca