No more federal rebates for the Tesla Model 3

(Ottawa) The Tesla Model 3 will no longer top the list of electric cars that receive the most reimbursements in Canada.

Updated 2 Dec. 2021

Mia Rabson
The Canadian Press

In a notice posted on its website, Transport Canada says the popular battery-powered car is no longer eligible for the federal $5,000 zero-emission vehicle rebate for both 2021 and 2022 models.

Only Tesla Model 3s that were ordered before Nov. 23 will have their purchase price reduced further under what the government calls its iZEV program.

Transport Canada said the price increase for Tesla’s Standard Range and Standard Range Plus that took effect Nov. 23 now exceeds the eligibility criteria for the iZEV program.

“As a result, these vehicle models are no longer eligible for iZEV program incentives,” the ministry writes.

The automaker’s website now says the Model 3’s base price is $59,990, well above the $45,000 limit to qualify for the $5,000 discount. High-end versions of the same model can cost up to $55,000 and are still eligible.

In 2019, the company lowered its selling price to just under $45,000, in an effort to qualify it for the Canadian rebate, which began in May of that year.

Since then, nearly 35,000 Teslas have qualified, with the company receiving $173.6 million.

This puts Tesla in the lead as the most popular electric car in Canada. The Toyota Prius Prime plug-in hybrid comes in second place. It qualifies for a $2,500 rebate that has been granted for 14,822 vehicles since May 2019, for a total of $36.9 million.

The Hyundai Kona is the second most popular all-electric vehicle and is also eligible for the full $5,000 refund. The company submitted reimbursement requests for 12,890 cars and received 64.4 million.

Joanna Kyriazis, senior policy adviser at Clean Energy Canada, said the Tesla 3 has proven to be very popular, but she’s not concerned its removal from the iZEV program will negatively impact overall electric car sales.

“The federal rebate program has been very popular, and there are many other EV models that could qualify for the federal rebate,” she said. We just need a national guideline for zero-emission vehicles in place to ensure that enough of these vehicles are available to Canadians across the country. »

Earlier this year, the federal Liberals said they intended to announce that by 2030, half of all new cars sold in Canada will be zero-emission and all will be zero by 2035. About 3.5% of new cars sold last year were zero-emission vehicles.

The Tesla 3s rose to the top of the rankings of popular vehicles in Canada before the federal incentive appeared. Launched in the spring of 2018, Tesla topped the sales list, selling nearly 5,000 cars in the first four months they were on sale. The Nissan Leaf, which was in second place in the second and third quarters of 2018, sold around 3,800 copies.

Leave a Comment