More affordable Tesla Model 3 will qualify for $5,000 federal EV rebate from Canada.
Well that didn’t take long. Tesla announced today a cheaper version of its Model 3 EV that will qualify for the $5,000 federal electric vehicle rebate from the Government of Canada. There is a catch, however.
The Tesla Model 3 Standard Range normally has a starting price of $53,700 which is more than the $45,000 threshold to qualify for the new federal iZEV electric vehicle incentive program that launches on May 1. Sensing that the $5,000 rebate was an important thing to have on its vehicle, Tesla announced a new, limited range Model 3 priced at $44,999.
And now about that catch. The cheaper Tesla Model 3 will only have 150 kilometers of range, the smallest among the all-electric vehicles that qualify for the $5,000 EV incentive. That’s also quite a bit less than the 386 kilometers offered by the Tesla Model 3 Standard Range Plus.
The good news is that the Model 3 Standard Range Plus with 383 kilometers of range now qualifies for the federal iZEV incentive program. The program states that more expensive versions of a model will qualify so long as they cost less than $55,000 and that there lineup’s base model costs less than $45,000.
It’s an interesting strategy by Tesla, but how much interest will a 150-kilometer Model 3 have against models like the Hyundai Kona EV, Chevrolet Bolt and Nissan LEAF Plus that also qualify for the $5,000 rebate, cost as the Standard Range Model 3 and have more than double the range.
Tesla isn’t producing a cheaper, less-equipped model to get below the $45,000 barrier, they are simply locking the software to 150 kilometers of range. In any case, the strategy makes the Tesla Model 3 that qualifies for the federal iZEV electric vehicle incentive program in Canada. It also gets an additional $8,000 in Quebec and 5,000 in British Columbia.