On May 23rd, it was announced that Tesla will sell China-made Model 3 and Model Y vehicles in Canada, confirming that the company has completed the first shipment from its Shanghai factory to North America.
According to Tesla’s website, the rear-wheel-drive Model Y and the Long Range all-wheel-drive Model 3 are currently available for immediate delivery in British Columbia, Canada. Both models are eligible for a federal government subsidy of 5000 Canadian dollars. However, it is currently unclear how many Tesla vehicles made in China are available for purchase in Canada and how many have already been sold.
Exporting cars produced by Tesla’s Shanghai plant to overseas markets may help the company sell cars produced in California and Texas in the United States, as these cars are eligible for potential tax incentives of up to $7,500 under the US government’s subsidy program. However, Tesla faces increasingly fierce competition from Chinese electric vehicle manufacturers in terms of price and functionality, and its Berlin plant has been increasing production of the Model Y aimed at European customers.
Meanwhile, Tesla’s production base in China enjoys the company’s cost advantage worldwide. The Chinese-made Model Y sells for CAD 61,990 in Canada, about 22% higher than the cost of the equivalent car before China introduced preferential policies. However, as Canada does not link electric vehicle subsidies to the location of car production plants, Tesla can export Model 3 and Model Y cars made in China to Canada, and these models are also eligible for subsidies.
Through inquiries, it was found that the codes used by Tesla cars when listing for sale correspond to the first three digits of the vehicle identification number (VIN). The VINs of Tesla models produced by the Shanghai plant all begin with the letters “LRW”, indicating that the Model 3 and Model Y sold in Canada are made by Tesla’s Shanghai plant. Tesla’s sales in Canada will help expand its share of the North American market and provide a new market for Tesla cars made in China.
