After revealing European prices last week, today Tesla confirmed its Canadian Model X pricing and reservation holders can now access Tesla’s design studio to configure their vehicle.
If you reserved the vehicle a few years ago when the Canadian dollar was still holding its ground against the USD, you better be seated when scrolling through the Model X’s pricing because it starts at $122,700 for a base 70D model and can get as high as $208,300 for a fully-equipped P90DL.
In comparison, a Model X 70D starts at $80,000 USD in the US, which is the equivalent of $106,056 CAD at the current $1.33 CAD for $1 USD exchange rate.
The difference seems especially big if we compare it to the Model S which starts at $70,000 USD ($92,800 CAD) in the US, while being just a little more expensive in Canada at $95,300 CAD.
We contacted Tesla to ask for the reason for the significant difference between the Canadian and US pricing and if it solely related to the cost of importing the vehicle being different than for the Model S. We will update this article if Tesla gets back to us.
Update: A Tesla spokesperson sent us the following statement:
“We are committed to offering a price for our vehicles that is fair for both our customers and Tesla. We adjust the cost of our vehicles internationally according to the exchange rate and then include the country’s import fees, tax, and registration.”
It doesn’t really explain the difference between the ~2.5% increase in price of the Model S in Canada versus in the US and the ~15.5% increase in price of the Model X in Canada versus in the US. We asked for a clarification and we will update again if need be.
If we compare only the options, the difference after the exchange rate is smaller, but still noticeable. For example, the Autopilot Convenience Features Package is priced at $3,700 CAD, which is the equivalent of $2,790 USD or $290 (11%) more than the $2,500 USD price in the US.
Here’s the full design studio for the Canadian Model X:
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Part of the price is also a 6% import tariff due to “foreign” content which the Model S also has. That could explain some of the discrepancy but not all of it. Too rich for my blood. I’m hopeful Model 3 will still be affordable for Canadians but with Tesla adjusting to the exchange rate unlike other US manufacturers the oft-quoted base price of $35K US is pushing $47K CAD and that’s before you add any options. Model 3 will be a $60K car here, easily.
I really hope not because I have my mind set on a model 3 but at 50k I’ll find it hard to justify. With Ontario incentives it’s still doable but who knows how long those incentives will be around Especially if PC wins the 2018 elections).
Yes, the import tarriff is a significant part of it. I assume that the rest is Tesla making allowances for possible *further* drops in the Canadian dollar.
When Tesla starts producing its batteries in the Gigafactory (cells, not just packs) the tarriff should finally go away; apparently the batteries currently add too much foreign-produced “value” to qualify the Teslas for the NAFTA tarriff exemption. So that’ll help with Model 3.
Yes, that is what I understand as correct. The cells are made in Japan (Panasonic) and account for a large amount of the “foreign content”. Since the cells for Model 3 will be made in the Gigafactory in Nevada, the tariff should no longer apply. Until the 18650 cells are made in the USA the tariff will still apply for Model S/X
The Canadian purchase page for the “High Amperage Charger Upgrade” should really make mention of the public high-amp chargers available from Sun Country Highway, which are all over Canada, including in places with no Superchargers.
Found this response from George Blankenship, former Tesla VP on TM forums (2012 post) regarding the price calculation:
“unfortunately, all cars manufactured in North America cannot be imported into Canada duty free. In order to be duty free, a minimum percentage of the car must be made in North America. Model S falls slightly below that percentage, so our cars cannot be brought into Canada duty free. We must pay the 6.1% import duty. We do not have a choice. That is the only reason why we are including it in our pricing.
I hope this helps make things a little clearer regarding the 6.1%.
Regarding the overall math, here’s how we see the build up:
US Base price
+ $1,500 USD for interior upgrade
+ 6.1% duty
+ 1.5% to 2% for incremental transportation and business costs
Then convert this total using a mid-term currency conversion rate
That’s the way we did it.”
model x price just reduced