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Tesla Doubles Rebate to $7,500 in the U.S. and Offers a 5,000 CAD Discount in Canada

As usual, the year’s end is not the best for car sales, but the situation is even worse this year. Tesla is pushing hard to improve demand for its vehicles and is throwing everything at it. In the latest move, the EV maker has doubled the discount offered to U.S. customers, while introducing a credit worth 5,000 CAD (around 3,670 USD) in Canada.
Tesla doubles the rebate to $7,500 for Model 3 and Model Y in the U.S. 7 photos
Photo: Tesla
Tesla doubles the rebate to $7,500 for Model 3 and Model Y in the U.S.Tesla doubles the rebate to $7,500 for Model 3 and Model Y in the U.S.Tesla doubles the rebate to $7,500 for Model 3 and Model Y in the U.S.Tesla doubles the rebate to $7,500 for Model 3 and Model Y in the U.S.Tesla doubles the rebate to $7,500 for Model 3 and Model Y in the U.S.Tesla doubles the rebate to $7,500 for Model 3 and Model Y in the U.S.
When it put incentives and price cuts in place, Tesla admitted that demand for its cars was not as strong as it wanted. The reasons for lower demand are diverse, but in the U.S., they’re mostly related to the Inflation Reduction Act (IRA) tax credits coming into effect on January 1. Because the tax credit is only offered for electric vehicles delivered next year, many people postponed the acquisition. Moreover, multiple customers were canceling their pending orders because they were unsure if the cars would be delivered after January 1, 2023.

Whatever the cause, the drop in demand sounded an alarm at Tesla, especially as the inventory started to build. Indeed, it is now possible to buy a Tesla EV from the existing inventory instead of building it. Not only that, but the “Buy Now” button on the Tesla website leads directly to the Inventory portal. Not that the “December 2022” delivery estimate in the “Build your custom Tesla” section would be excruciatingly long.

To make people keep their orders and move the cars from the inventory, Tesla offered a $3,750 discount in the U.S. in early December, which coincidentally was exactly half the IRA tax credit. It didn’t help very much because two weeks later, it also threw 10,000 miles of free Supercharging into the mix. These are the equivalent of about $1,000 worth of free Supercharging and can be used up to two years after the car is delivered.

Guess what? It still wasn’t enough because Tesla felt the need to double the discount offered to its U.S. customers to $7,500. This equals the full IRA tax credit, and the best part is that the 10,000 free Supercharging miles are still on the table. There’s no reason to delay or cancel the acquisition anymore, at least none related to the IRA tax credits.

There are some conditions, though. First, the discount only applies to Model 3 and Model Y orders, although Model S and Model X buyers still get the free Supercharging miles. And second, it’s only for vehicles delivered by December 31. This is not a problem because the IRA tax credit takes over from then, ensuring a similar advantage.

The Canadian customers watched in awe as the U.S. got all the benefits, but hours later, Tesla made a similar announcement. It is not as generous as it was south of the border, but still enticing. Specifically, Canadians get a similar free Supercharging credit, although it’s 10,000 kilometers (about 6,200 miles) instead of 10,000 miles. The discount is also more modest, at 5,000 CAD (around 3,670 USD). According to Canadian media, there are currently over 200 Model 3 and Model Y cars in Tesla’s inventory across Canada.
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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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