Tesla has officially started Model Y deliveries in Canada — the first international market expansion for the new electric SUV.
For each new vehicle Tesla launches, it first starts deliveries in the US – starting in California near its Fremont factory.
The automaker works through its backlog of orders in the US and then starts expanding internationally — starting with Canada.
With Model 3, Tesla started deliveries to customers in the US in December 2017, and it expanded in Canada in May 2018.
Things moved faster with Model Y.
Tesla started delivering the electric SUV in the US in March 2020, and now we learn that it already started deliveries in Canada.
The Tesla Owners Club of British Columbia announced that the first delivery happened yesterday.
They shared pictures of the little party they threw to celebrate on Instagram:
Tesla is not expected to have the same kind of success with Model Y as it had with Model 3 in Canada.
The country has a federal EV incentive program, and several provinces have EV rebates on top of the federal incentives, but they all have limits on the MSRP in order for vehicles to be eligible for the rebate.
The federal program offers $5,000 for vehicles that start at less than $45,000, and the province of Québec, which has the most generous EV rebate, gives an $8,000 rebate to people who buy a new electric car that costs less than $60,000.
In Canada, Tesla Model Y starts at $76,000 for the least expensive configuration currently available:
In USD, that’s equivalent to ~$56,400 or $3,000 more than the cheapest Model Y available in the US.
The federal EV rebate program does have a provision to give EVs with seven or more seats access to the $5,000 rebate if they start at less than $55,000.
Tesla plans a seven-seat version of Model Y, but it’s not likely to cost less than $55,000.
Tesla in Canada
Tesla has been leading the electric revolution in Canada, with several times the sales of the next best seller.
In Q1 2020, Tesla delivered over 4,000 Model 3 vehicles, which is impressive for the relatively small auto market.
It helped overall electric vehicle sales grow 50% year-over-year in Canada.
However, EVs still represent a small part of overall automotive sales in the country.
More electric vehicle models hitting the market is expected to make a big difference in the next few years.
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