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Tesla buyers now have access to Ontario’s generous $14,000 EV incentive

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Ontario’s government is offering one of the most generous direct electric vehicle incentive – between $6,000 and $14,000 to support the purchase or lease of eligible battery-electric and plug-in hybrid electric vehicles.

Tesla buyers had no access to this full incentive since cars with MSRPs between $75,000 and $150,000 were capped at a $3,000 incentive. The government lifted the cap this week and lowered the entry price of the Model S and X in Canada in the process.

Here are the changes made to the program this week:

  • Removes the cap limiting EV incentives to 30 per cent of the manufacturer’s suggested retail price (MSRP)
  • Eliminates the $3,000 cap on incentives for EVs fully run on battery power and priced between $75,000 and $150,000, which enable long-range, zero-emission travel and have less environmental impact than lower priced plug-in hybrids
  • Continues to exclude EVs with an MSRP of $150,000 and above from qualifying for incentives
  • Offers incentives only on vehicles produced by automakers who are partners in Ontario’s new Electric and Hydrogen Vehicle Advancement Partnership (EHVAP).

The change mostly affects Tesla since most EVs were already below $75,000 in Canada, but due to the exchange rate between the Canadian and American Dollars, Tesla’s vehicles are still quite expensive in the country.

The Model S 60 starts at $97,200 CAD (~$75,000 USD) versus the $68,000 USD starting price in the US.

While today’s change in the incentive program is effectively making Tesla’s vehicles $11,000 cheaper in Canada, the Model S still starts at $83,200 after incentive. A fully equipped Tesla Model S P100D in Canada costs over $220,000.

Canada reached a record number of EVs last year: over 20,000 plug-in electric cars (BEV and PHEV). Despite its smaller population and less generous incentive ($8,000), my home province of Quebec is still leading in plug-in sales, but it wouldn’t be surprising to see Ontario catch up this year as the up to $14,000 incentive fully materialize:plugins-by-province-2016-q3

You can use our referral code for $1,000 in credit at the purchase of a new Model S or X through Tesla referral program. By using our code, you will also enter our giveaway of a $10,000 new set of exclusive Arachnid wheels for the Model S and get an Electrek sweater.

FTC: We use income earning auto affiliate links. More.

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