Tesla has raised the price of all Model Y variants in Canada by $1,000, removing them from eligibility for the federal $5,000 iZEV rebate.
This move, which took place on Friday afternoon, comes after news that the iZEV fund was about to run out of money, and less than a day after the company launched the refresh version in the Asia-Pacific region.
UPDATE: Tesla also increased Model 3 prices. You can read more about that here.
The updated pricing structure is as follows:
• Model Y Long Range RWD: $59,990 → $60,990
• Model Y Long Range AWD: $63,990 → $64,990
• Model Y Performance: $68,990 → $69,990
As a result of these increases, the base Model Y now exceeds the $60,000 threshold set by Canada’s Incentives for Zero-Emission Vehicles (iZEV) program, meaning all trims are now ineligible.
Additionally, Tesla has removed the messaging from its website indicating that the Model Y qualifies for the federal rebate.
Tesla’s price adjustment coincides with news that the iZEV fund is nearing depletion. Earlier today, the government revealed that the program, which has fueled electric vehicle (EV) adoption across Canada, was rapidly running out of funds.
By increasing the base price of the Model Y, Tesla has removed its vehicles from the pool of eligible models, potentially extending the program’s lifespan for other EV manufacturers.
For prospective Tesla buyers in Canada, this change will be significant. The Model Y will now cost even more without the benefit of a $5,000 rebate to offset the initial purchase price. This adjustment may push some customers to consider other eligible EVs in the same price range.
