Tesla Model 3 no longer eligible for EV rebate in Canada

The Tesla Model 3 is no longer eligible for an electric car rebate in Canada. This news follows Tesla announcing a price increase to its standard range and standard range plus models effective from late November, exceeding the iZEV program’s eligibility requirements.

The Tesla website now lists the base price for the Model 3 as $59,990 in Canada. That is well above the $45,000 qualifying price to get the $5,000 rebate. Higher-end versions of the same model can cost up to $55,000 and still be eligible due to the trim level. For all other versions, Transport Canada on its website states that only Tesla Model 3 ordered before 23 November will remain eligible for the purchase premium through the iZEV scheme.

In 2019, the company had lowered the Model 3 base price to just under $45,000 to make it eligible for the program, which reportedly began in May of that year.

As a result, nearly 35,000 Teslas qualified for it, making the Model 3 the best-selling subsidised electric can in Canada. For comparison, the Hyundai Kona is the next most popular electric vehicle. The company has submitted 12,890 cars for the rebate to date.

Tesla has not commented on the price change or possible repercussions. It is, however, likely that the new pricing follows changes in the listings and range specifications the company had implemented at the beginning of November.

However, while there is some concern that the new pricing will hamper Tesla’s sales in the country, the Model 3 was popular in Canada before the federal incentive came in. Introduced in spring 2018, Tesla sold nearly 5,000 cars in the first four months on offer. In second place in the second and third quarters of 2018, the Nissan Leaf sold about 3,800.

The federal iZEV scheme runs on a first-come-first-serve basis, and Canada in 2019 allocated CAD300 million (about 200 million euros) at the time, expecting the programme to run over three years until 2022.

Canada has since adjusted its zero-emission vehicle targets, now aiming that by 2030, half of all new cars sold in Canada are zero-emissions, and 100 per cent by 2035. Previous targets wanted 100% decarbonisation by 2040. About 3.5 per cent of new cars sold last year were ZEVs.

globalnews.ca, canada.ca (iZEV program details)