Tesla Offers China-Made Electric Vehicles For Sale In Canada

The news is circulating in the market is that Tesla Offers China-Made Electric Vehicles For Sale In Canada. On Tuesday, Tesla (TSLA.O) confirmed that it had finished its first shipments from its Shanghai production to North America by placing China-made Model 3 and Model Y cars for sale in Canada on the company website.

The long-range, all-wheel drive Model 3 and the rear-wheel drive Model Y vehicles were listed on Tesla’s website as ready for immediate delivery in British Columbia, with codes indicating they were made in Tesla’s Gigafactory Shanghai.

In Canada, which, unlike the United States, does not relate the site of electric-vehicle subsidies to the location of the plant that built the car, both models are eligible for federal incentives totaling C$5,000 ($3,700).

Requests for comment were not immediately answered by Tesla representatives in China or at the company’s headquarters in the US.

Like other producers of electric vehicles, the business enjoys a cost advantage in China as exports from that market flourish. The price of the Model Y produced in China was C$61,990 in Canada. Before incentives, the identical vehicle in China would have cost roughly 22% more.

With its decision to export to Canada from Shanghai, Tesla may be able to keep selling cars built in its plants in Texas and California in the US, where they may be eligible for tax benefits of up to $7,500 under the Biden administration’s subsidy scheme.

Additionally, it gives Tesla Shanghai, which accounted for more than half of the company’s output last year, access to a new market.

EVs are produced in Tesla’s Shanghai factory and exported to international markets, including Europe. But Tesla faces increasing price and feature competition from Chinese EV manufacturers, and its Berlin factory has been increasing Model Y production for European clients.

When selling cars for sale, Tesla utilizes a code that matches the first three digits of the VIN or vehicle identifying number. All Tesla models produced by the Shanghai facility have VINs that begin with the letters “LRW.”

It was unclear how many Tesla cars built in China were on sale in Canada or how many were still on the road.

Tesla announced last month that it would sell a new, less expensive Model Y in Canada; this variation would have rear-wheel drive and be eligible for government incentives in that country.

The vehicles listed on Tesla’s website as eligible for the subsidy have a VIN code proving they were made at the company’s Shanghai factory.

According to a Tesla manufacturing schedule seen by Reuters, the carmaker has designed and tested Model Y vehicles to export over 9,000 units this quarter. Those Model Y automobiles, according to a source with knowledge of the situation, were destined for Canada. Due to the situation’s sensitivity, the person chose not to be named.

What the equivalent goal for Model 3 shipments to Canada was needed to be readily apparent.