Do you remember when we reported on Canada’s snub of Tesla in regards to making them ineligible for a $5,000 CAD electric car incentive? Well, it looks like Tesla has found a way around its disqualification from the electric car incentive in Canada with a clever (if a bit silly) solution.
Canada Blocks Tesla From Incentive Due to Price
The reason Tesla ran into this problem in the first place is due to pricing. To qualify for the $5,000 iZEV incentive, all electric cars with six or fewer seats must boast a manufacturer’s suggested retail price of less than $45,000. Higher priced versions of the same eligible models could still be eligible as long as the MSRP fell under $55,000.
But the Tesla Model 3 started at $53,700 on Tesla’s website.
Tesla’s Creative Workaround
Being barred from receiving a hefty incentive like that was bound to cut Tesla’s sales in favor of its eligible competitors, so the electric vehicle manufacturer came up with a solution: they changed a bit of the software so that the Model 3 Standard Range is limited to a range of 93 miles (150 km).
Once you are done laughing at the idea that anyone would buy any electric vehicle with only a 93 mile range, take a look at more of the details. By software limiting the range, Tesla is able to offer the vehicle at $44,999, just $1 under the $45,000 limit set by Canadian law. Since the base price meets the requirements of iZEV, then the Standard Range Plus also qualifies for the $5,000 incentive, because it is considered a trim level of the Model 3 and comes under the $55,000 ceiling. As a result, Tesla can continue to sell the car at practically the same MSRP as before, and consumers can snag that nice $5,000 incentive.
It may still sound pretty silly, but since the Tesla Model 3 is now listed on the official eligible vehicle list, it seems as though Canada is completely okay with their unusual workaround.
Upgrading is Expected
Now Tesla is obviously expecting potential owners to upgrade to the usual 240 mile (386 km) model. In fact, the Canadian version of the Model 3 Standard Range is not even available to order online; if a customer is determined to own the ultra-short-range model, they need to visit or call a Tesla store to place their order.
If an owner does order this model and later wants to upgrade to the higher range version, it is simple enough to do. Both versions of the Model 3 ship with the same battery pack, and customers can pay to upgrade their car and remove the software block at any time after purchase.