Tesla offers new discounts on its Model 3 and Model Y electric vehicles (EVs) in Canada and Mexico, but now raises questions about the future demand.
Concerning Discount Promo
Credits of up to $5,000 CAD or $74,750 MXN are available for a Model 3 or Model Y purchase in Canada or Mexico before the year ends.
According to Electrek, it is unusual for Tesla to give discounts, which might indicate a growing interest in the North American market.
The change occurred after Tesla raised the year-end discount in the nearby US to $7,500.
Tesla's website advertises the rebate as a "credit," yet clicking the "Learn More" link only provides information on the supercharger incentive that was announced on Dec. 15 and has been accessible to customers since then.
It says, "Tesla is offering free Supercharging credits* - up to 10,000 kilometers of driving-for customers who take delivery of a new Tesla vehicle between Dec. 15 and Dec. 31, 2022. Free Supercharging will be credited to your Tesla Account in the month of January 2023 and will remain valid for a period of two years from your delivery date."
However, this discount has not been reflected in the cost of cars in the site's inventory.
The midrange vehicle is priced at $59,990 CAD, the same as a fully-customized version of the identical basic model. It is unclear how the $5,000 CAD reduction from the online price will be applied to the inventory of automobiles already in stock.
For further information, it is better to consult a Tesla sales representative.
Possible Link to EV Tax Incentives?
Canadian and Mexican sales prices are almost equal to the further US price cut that went into effect on Wednesday, Dec. 21. The difference between the two is the $3,750 USD that Tesla added to the US discount.
This reduction might be a reaction to shifting EV tax incentives in the US.
It was thought that Teslas would be eligible for $3,750 in EV tax credits in 2019 owing to the Inflation Reduction Act. However, the Treasury said Monday that they would be deferring new regulations. This means that Teslas will be eligible for $7,500 in tax credits at least until some time in March.
Buyers may postpone the purchase to gain new tax credits; thus, Tesla could provide a short discount to sell vehicles now.
Canada and Mexico do not have a comparable tax credit adjustment at the start of the year. Therefore the discount must not be linked with that.
This suggests, according to the report, that Tesla has a smaller order book than typical this Christmas season and wants to entice consumers with a special deal.
EVs' Demand
Tesla cars' price hikes over the previous year were largely attributed to rising supply chain expenses and EV demand. With EV supply lower than demand, costs have risen for many EVs.
But the auto industry is finally stabilizing, with new and used vehicle prices flattening off from their upward trajectory.
