Tesla pauses Model Y deliveries in Canada amid rebate approval delay for Chinese imports

If you were expecting to take delivery of a new Model Y in Canada this week, you are going to have to wait a little longer as Tesla has paused all deliveries across the country. The reason for the delay is rebate eligibility after Tesla’s recent decision to go back to importing the Model Y from China, instead of from California.

Last month Drive Tesla broke the news that Tesla was once again shipping Model Ys built at Giga Shanghai to Canada. The change in logistics meant small changes to the range estimates for each Model Y variant, as the electric SUV is built in China has a different battery pack than those built in the United States.

There are also some other complications Tesla has to deal with in changing their shipping logistics, and one of them is eligibility for the federal rebate, forcing Tesla to pause all Model Y deliveries in Canada.

On Tuesday Tesla reached out to customers to inform them that pending deliveries scheduled for today was on hold. According to one of our readers who received this phone call, Anthony Hosford, Tesla said they are waiting for the federal government to decide whether Teslas made in China are eligible for the $5,000 rebate.

This wording is concerning, given that the Canadian government is currently deciding whether to impose tariffs on Chinese-made electric vehicles (EVs). However, while what was said by Tesla is technically correct, there has been no change to federal rebate policy, at least for now, so there should be no worry that the Model Y will lose eligibility.

So then why have Canadian deliveries been paused? The reason is each zero-emission vehicle (ZEV) requires approval from the government to be eligible for the rebate, including separate approvals for models built in China and built in the US. Given how recently Tesla decided to change their logistics, Transport Canada has not yet issued their approval and the list of eligible vehicles does not include a 2024 Model Y import.

Unfortunately Tesla does not know when the approval from Transport Canada will arrive, so we also don’t know when deliveries will resume, but it will hopefully be only a week or two at most.

Has your Model Y delivery appointment been cancelled? Let us know in the comments below.

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