If you have been on the fence about buying a new Tesla Model S or Model X in Canada, you might want to check out some of the deals being offered on cars in existing inventory across Canada. That is of course if you don’t mind missing out on Hardware 4 (HW4), which has all signs pointing to its imminent release and is what we believe to be the driving force behind these discounts.
Earlier this year the Dual Motor All-Wheel Drive Model S was selling for $135,000. Just 12 days into the new year Tesla slashes prices on all their vehicles, bringing the entry level Model S down to $122,990, an 11% reduction in price.
If that new price isn’t low enough for you to bite the bullet and place an order, there are a number of new and demo Model S sedans listed in existing inventory with substantial discounts.
The biggest discount is on a 2023 Model S in Richmond, BC. The former demo vehicle has 1,282km on the odometer, which is enough for Tesla to reduce the price by $10,890 to $112,100. You can check out the listing here.
If that mileage is too high and you are looking for a new Model S, the best deal is on this white 2023 Model S with 19″ Tempest wheels and 33km on the odometer in Laval, Quebec for $116,480, or a $6,510 discount on the MSRP.
The savings are about the same for the Model X. The lowest mileage and lowest priced one we could find is one in Quebec City with 15km on the odometer listed for $132,460, or $10,530 cheaper than the list price of $142,990.
While the discounts are nice, the savings are even more when you take into account the federal luxury tax. The tax is on vehicles priced above $100,000 and is calculated on the lesser of either 10% of the total purchase price or 20% of the total price above the $100,000 threshold.
In the case of the first Model S noted above the luxury tax adds just $2,820 to the invoice, a more than $2,000 savings compared to the $4,998 luxury tax applied on one listed at the regular starting price of $129,990.
As we mentioned above, these discounts are likely being offered in an attempt to clear out inventory of cars with the current generation of self-driving computer, known as Hardware 3 (HW3). Based on what we know Tesla is about to introduce HW4, and is already including them in Model X SUVs being built at the Fremont factory, but not yet delivering them to customers. We don’t know when deliveries with the new hardware will start, but there is a good possibility it will be announced during Investor Day on March 1.
You can read more about HW4 and the changes it will offer over HW3 here.
There are currently 84 Tesla Model S cars and 177 Model X SUVs listed for sale in existing inventory at the time of publication. The easiest way to check them all out is on the third-party inventory tracking website WaitingForTesla.com.