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In response to Canada’s federal electric cars incentive price cap below $45,000 or $55,000 with options, Tesla lowered the cost of the Model 3 to $44,999 in the country. However, it also software-locked the vehicle to only 150 km (93 miles) of range. Is Tesla trying to take advantage by selling the new base Model 3 with half the range and a reduced price of $2,000? Well if this were the case, the automaker would have offered to unlock the range as an option which doesn’t seem to be happening. Indeed Tesla claims that “In order to be eligible for the incentive in Canada and provide our customers with this benefit, we are unable to offer a range upgrade on Model 3 Standard Range cars.”
Instead of selling the range limited Model 3, Tesla seems like it’s trying to push the upgraded Model 3. By lowering the price of the base Model 3, the Standard Range Plus becomes suitable for the incentive since it is technically an option for a car which starting price is below $45,000 and doesn’t go over $55,000.
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