Tesla (TSLA) to export Model Y from China to Canada
According to a memo seen by Reuters, and an unnamed person with direct knowledge of the plan, Tesla (NASDAQ: TSLA) has begun producing a version of the Model Y in Shanghai to be sold in Canada this year. This will be the first time the company will be shipping cars to North America from China.
Over the weekend, Tesla posted on its website that it would offer a new, cheaper version of its Model Y in Canada, a rear-wheel drive variant of the SUV-styled crossover priced C$10,000 ($7,377.90) lower than the long-range version of the vehicle available in that market.
The Canadian government's website was also updated on Friday to show that the new version of the Model Y and the more expensive long-range variant both qualify for incentives of C$5,000 on purchase or a four-year lease.
Canada's transport agency's EV incentive program mandates that a base model for an SUV has to be under C$60,000 to qualify for the subsidy of up to C$5,000. Higher cost variants are then also eligible at a price of up to C$70,000.
The introduction of the cheaper Model Y for Canada qualified both it and Tesla's C$69,900 long-range Model Y for the incentive as of Friday, Transport Canada said on its website.
Tesla's website showed that customers in Canada could take delivery of the new version of the Model Y between May and July.
Tesla’s Shanghai factory began production of the Canadian Model Y earlier this month, the person with knowledge of the development said. The production memo reviewed by Reuters showed that vehicles had been designed and tested for export to North America, with a target of producing nearly 9,000 this quarter.
Shares of TSLA are down 0.78% in pre-market trading on Monday.
By Michael Elkins | [email protected]