Tesla has issued another substantial price cut to the Model Y in Canada, this time to the Performance variant, making it eligible for the federal and some provincial incentives for the first time. The price drop comes less than a week after Tesla dropped prices of the Rear-Wheel Drive (RWD) and Long Range (LR) variants by $4,000 each.
According to an update to the Design Studio on Tuesday night, the top-of-the-line Model Y now starts at $69,990, down $4,300, or 5.7% from the previous starting price of $74,290.
It is however a much more substantial drop and a new all-time low for the Model Y Performance. It is now priced $20,400, or 22.6% lower than early 2022, when it was priced at $90,390.
The RWD and LR variants are still priced at $53,990 and $63,990 respectively, and there have been no changes to prices in the US.
The big implication of the price drop is that the Model Y Performance is now eligible for the federal iZEV rebate of $5,000. The program has a price cap of $70,000 for SUVs, meaning Tesla’s new price is just $10 below that limit, but it is below, unlocking the $5,000 incentive.
It also means the Model Y Performance is now eligible for additional provincial rebates. In British Columbia for example, buyers there can get an additional $4,000 off the purchase price, for a combined total of $9,000 off. The BC incentive is income-based, so not all buyers will qualify for the full amount, or any amount at all.
While the price drop is enough to bring it in line for the federal rebate and BC’s rebate, it is not enough to gain access to Quebec’s $7,000 rebate, which carries a $65,000 price cap.
As we noted Tesla dropped prices of the RWD and LR variants of the Model Y last week, making the entry-level version of the Model 3 and Model Y the same price in Canada.