Tesla Inc TSLA looks to take advantage of incentives for buyers of less expensive electric vehicles by offering a lower range Tesla Model 3, available in Canada.
What Happened: Tesla is selling the Model 3 for $44,999 Canadian dollars with a lower range, according to Electrek. The vehicle price is equivalent to $35,909 U.S. dollars, as of today.
In 2019, Canada offered a $5,000 incentive for the purchase of an electric vehicle priced at $45,000 or less. The majority of the most popular-selling EVs in the country fell into the category of the incentive.
Tesla was excluded from the incentive because its Model 3 didn't land at or below the price requirement, which was $53,700.
Tesla began selling a less expensive version of the Model 3 with a lower range of 150km, or 93 miles, as an off-menu option to customers who had to know about and ask for it either in person or over the phone in to order to get the incentive.
Along with the lower range of 150km/93 miles, the less expensive version of the Model 3 has no option for Autopilot.
The Model 3 Standard Range Plus comes with a range of 423km/263 miles.
Related Link: Cathie Wood, Ark Funds Lay Out New $3,000 Price Target For Tesla Shares
Why It’s Important: The Model 3 is among the bestselling EVs in Canada, though the company could have been missing out on some potential customers with a price point that did not qualify for the incentive.
In Canada, several new EV options are coming, according to Electric Autonomy. A new lower-priced Chevrolet Bolt from General Motors Company GM could come with a starting price of $38,198 Canadian dollars.
New models from Tesla aren’t expected until June at the earliest, according to Electric Autonomy.
Tesla lowered the cost of the Model 3 in the U.S. to $36,990 in February, but has since raised it to $38,490 for the Model 3 Standard Range this week.
With the U.S. government discussing possible EV incentives, Tesla could change its pricing in the country to fall into certain requirements.
TSLA Price Action: Shares of Tesla were down 1.21% to $675.55 on Friday afternoon.
Related Link: Click here to check out Benzinga’s EV Hub for the latest electric vehicle news.
(Photo: Tesla)
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