Electric car news
The American manufacturer Tesla has just created a surprise by discreetly announcing a massive increase in its prices on the Canadian market. This decision, which will take effect on February 1, 2024, comes in a particularly tense context for buyers of electric vehicles in Canada.
An unprecedented price rise
The Model 3, Tesla’s flagship sedan, will undergo the largest increase with an increase reaching 9000 dollars canadiens. The other models in the range are not spared: Model Y, Model S and Model X will see their prices increase by 4000 dollars canadiens. Only the Cybertruck escapes this price inflation.
This increase comes at particularly delicate timing since the federal iZEV incentive program, which offered aid of 5000 dollars canadiens for the purchase of an electric vehicle, has just stopped prematurely due to lack of available funds.
Trade tensions as a catalyst
The origin of this increase could be linked to growing trade tensions between the United States and Canada. Prime Minister Justin Trudeau recently spoke of retaliatory measures if the American administration applied customs tariffs of 25% on Canadian imports.
Provincial alternatives for buyers
Canadian provinces maintain their own incentive programs:
- Yukon, New Brunswick and Prince Edward Island: 5000 dollars canadiens
- British Columbia and Manitoba: 4000 dollars canadiens
- Nova Scotia: 2000 dollars canadiens
- Newfoundland and Labrador: 2500 dollars canadiens
Impact on the electric vehicle market
This situation could redistribute the cards on the Canadian market for electric cars. Competing manufacturers could seize this opportunity to gain market share, particularly among price-sensitive consumers. This increase comes as the Canadian government maintains its ambitious objective of 100% sales of new electric vehicles by 2035.
-Prospects for potential buyers
Buyers interested in a Tesla model still have a few days to take advantage of current prices. The combination of this price increase and the end of federal aid could direct consumers towards other brands offering electric vehicles more affordable. Chinese manufacturers, who are preparing their entry into the North American market with competitive models, could do well in this context of rising prices at Tesla.
This market reorientation could accelerate the diversification of electricity supply in Canada, stimulating competition and potentially innovation in the sector. Canadian consumers will now have to carefully study the different options available, taking into account not only the purchase price, but also the provincial assistance still available.
Written by Albert Lecoq
Specialist in electric car buying guides, I am passionate about new technologies and am a strong supporter of the adoption of electric technology and sustainable mobility.
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