Tesla Sells Cheaper Model 3 In Canada With Shorter Range

Tesla Inc. has launched a new and cheaper Model 3 in Canada but with a software-limited range of only 150 km to qualify for electric vehicle (EV) discounts offered by the government.

Tesla hasn’t been able to take advantage of Canada’s EV rebate because the base Model 3 sold in the country starts at C$47,000. Canada’s new C$5,000 incentive is only applicable for new EVs with base prices lower than C$45,000 and costing no more than C$55,000 after options.

For a car maker to be eligible for incentives, "a vehicle must have a base-model manufacturer’s suggested retail price of less than $45,000 for passenger vehicles with six or fewer seats, and less than $55,000 for vehicles with seven or more seats," the Canadian government noted.

"For eligible vehicles with six or fewer seats, higher priced versions (trims) are eligible as long as the final manufacturer’s suggested retail price is $55,000 or less<."

In response, Tesla cut the price of the Model 3 to C$44,999 in Canada, but also software-locked the vehicle to only 150 km (93 miles) of range, according to Electrek.

Tesla said the 2019 Model 3 Standard Range and 2019 Model 3 Standard Range Plus qualify for the Canadian rebate, provided they’re also listed on Transport Canada’s website. The specs of the tesla cars are as follows:

• 2019 Model 3 Standard Range: range: 150km; qualifying OEM MSRP before delivery center fees and EV savings: $44,999
• 2019 Model 3 Standard Range Plus: range: 386km (EPA estimate); qualifying OEM MSRP before delivery fees and EV savings: $53,700

Both these discounted vehicles must be ordered online. MSRP excludes a $1,300 delivery and inspection fee and standard vehicle registration fees.

Analysts said that by making the new base Model 3 available, Tesla also made the regular Model 3 Standard Range Plus with a 386 km range eligible for the rebate since it’s technically an option on the same car that starts below $45,000 and doesn’t exceed $55,000.

For U.K. Tesla fans, the company has announced that its long-promised Model 3 will hit the road in June, but it won't be the base Model 3.

Tesla has pulled its basic Model 3 from online sales and is now pushing the more expensive versions. Customers can now purchase the Tesla Model 3 in a number of iterations. Prices range from £38,900 ($50,853) for the Standard Range Plus model, £47,900 ($62,691) for the Long Range model and £56,900 ($74,385) for the Performance model.

Tesla said the prices for these iterations of the Model 3 include a UK government-funded plug-in car grant of £3,500 ($4600). It also said fuel savings from using these EVs amount to £9,500 ($12,500).

The company, however, didn’t say how much it will cost to charge the Model 3, which is exempt from using Tesla’s network of Superchargers for free, unlike the Model S and X.